MUMBAI: USD/INR futures fell on Tuesday, after the spot rupee hit a one-month high following a dip in oil prices and as the dollar weakened on the prospect that the U.S. Federal Reserve will not raise interest rates as aggressively as expected.

Importers' hedging of near-term overseas dues could put a floor under futures later in the day, traders said. Forward premiums inched lower ahead of policy review by the Reserve Bank of India on Friday.


** NSE USD/INR August futures at 79.06 against 79.2775 previous close. Open interest (OI) at $3.18 billion.

** Brent crude down 0.8% at $99.28, extending Monday's tumble.

** Dollar index falls 0.2% to 105.22, tracking a decline in Treasury yields.

** Rupee August contract open interest (OI) at $3.18 billion.

** OI likely to fall amid profit-taking on speculative dollar short bets.

** "In recent days, there has been a buildup in short dollar positions. Some of these positions will be covered as the risk mood has soured somewhat," said a private bank dealer.

** BSE Sensex down 0.5% at 57,811.64 on global growth concerns.

** July rupee forward premium at 2.51 rupees against 2.54 previous close. One-year implied yield at 3.22% against 3.24%.

(Reporting by Nimesh Vora; Editing by Vidya Ranganathan and Sherry Jacob-Phillips)