The Rupee closed weaker on Monday, unable to benefit from a broadly weaker dollar in the face of corporate demand for the greenback over a trading session that was also marked by technical glitches. In the latter half of the session, traders observed two-sided corporate activity alongside dollar demand from some foreign banks. Traders expect the rupee to hover between 90-91 per dollar near-term, while watching out for a sustained recovery in foreign portfolio flows and exporter hedging, which could allow the rupee to extend gains spurred by the announcement of a U.S.-India trade deal last week. The day's minor hurdles left the rupee unable to benefit from a 0.2% decline in the dollar index while most Asian peers logged gains. The yen strengthened on Monday after Japanese Prime Minister Sanae Takaichi swept to victory in Sunday's election while the Thai baht was up sharply as well, following an election result.Pressure persisted in India's bond markets though, with the yield on the benchmark 10-year crossing over 6.75% on concerns over heavy state debt supply and soured mood from the absence of any additional measures to provide liquidity support by the central bank in its monetary policy announcement last week. The pound slumped against the euro and dipped versus the dollar on Monday as traders reacted to the crisis facing Prime Minister Sir Keir Starmer and as expectations of further interest rate cuts weighed on the currency. Yet Starmer remains under pressure, with the Epstein saga far from over and tough local elections looming. The euro was last up 0.49% against the pound at 87.22 pence. That was around a two-week high, though the euro remains flat against sterling this year. Against the dollar, the pound was a touch lower at $1.3607 after falling as much as 0.2% earlier in the session . British government bonds also slightly underperformed their European peers on Monday as markets focused on Starmer's situation, although the moves were muted . Many bond investors worry a new Labour prime minister would shift policies to the left and increase spending, while currency markets traditionally abhor political instability. The pound was also feeling the effects of a closer-than-expected BOE decision to hold interest rates last week, which caused traders to ramp up bets on further cuts this year. The European Central Bank meanwhile seems likely to keep rates steady for the foreseeable future, with the expectations of lower relative returns denting the appeal of the pound versus the euro. Three-month risk reversals , which show the difference between the cost of owning an option to buy the euro against the pound versus the cost of one to sell the euro against sterling, rose to 67 basis points, the highest since late November, from a low of 22 bps on Thursday. The higher the number, the more bullish sentiment is for the euro versus sterling and vice versa. The euro was also up around 0.4% against the dollar on Monday. Some analysts said a Bloomberg report that China has advised banks to limit their holdings of U.S. Treasuries was weighing on the dollar. Oil prices were stable on Monday after the U.S. and Iran pledged to continue indirect talks, easing oil supply fears, but India stepping away from Russian purchases gave prices a floor and global stock markets rallied. Brent crude oil futures were up 6 cents, or 0.1%, at $68.11 a barrel by 1304 GMT, while U.S. West Texas Intermediate crude rose 5 cents, or 0.1%, to $63.60.......