Preopen report: The Indian rupee should weaken early on Monday as the US dollar extended its rally after US President Barack Obama announced that congressional leaders had reached an agreement to avert a debt default.
* There could also be profit-taking after the rupee surged to a near 3-year high last week, traders said.
* Obama on Sunday announced a last-minute deal to raise the US borrowing limit and urged lawmakers to do the right thing and approve the proposed agreement to avert a catastrophic default.
* Stocks rose while gold and the yen dropped on Monday as investors cut safety trades after Washington reached the last-minute deal, though the top US credit rating could still be downgraded.
* At 0303 GMT, the MSCI index of Asian stocks ex-Japan was up 1.78 per cent while the Nifty India futures traded in Singapore were 1.05 percent higher, suggesting a positive start to the domestic market.
