On Monday, the Indian rupee exhibited a slight strengthening, mirroring the upward trend of its Asian counterparts, which were supported by a drop in US bond yields following new economic data that raised expectations for potential Federal Reserve rate cuts later this year.

As of 10.15am IST, the rupee stood at 83.44 versus the US dollar, a modest increase from its previous close at 83.4850. US Treasury yields and the dollar both fell after Friday's data revealed a rise in the US unemployment rate to 4.1 percent and the slowest annual wage growth in three years, suggesting a weakening in the labor market.

This data comes after a series of indicators signaling a slowdown in the US economy, which has increased the likelihood of a September rate cut by the Fed to nearly 76 percent, up from about 64 percent a week earlier, according to CME's FedWatch tool.

Asian currencies experienced a respite due to widespread US dollar weakness, although the risk for these currencies remains tilted towards depreciation, especially with the Fed's cautious approach, according to Lloyd Chan, senior currency analyst at MUFG Bank.

Last week, Asian currencies faced pressure, with the Japanese yen hitting a 38-year low and the offshore Chinese yuan reaching its weakest level since November. Despite recent US economic data showing weakness, Fed policymakers have generally maintained a观望态度 on the future direction of interest rates.

On the day, most Asian currencies gained, while the dollar index stood at 104.9 after a 0.2 percent decline on Friday. Traders anticipate that the rupee will likely maintain a sideways movement between 83.40 and 83.55.