MUMBAI, Nov 21 (Reuters) - The Indian rupee is expected to open slightly weaker against a firm dollar on Monday, tracking the Chinese yuan-led decline in Asian currencies.

The rupee is seen opening around 81.75 per dollar, compared to 81.6850 on Friday.

Weaker oil prices augur well for the rupee, but yuan's rapid depreciation could outweigh that and a sharp drop at open is possible, said a trader with a Mumbai-based bank.

All eyes will be on the Chinese currency as the rupee has been tracking it closely of late, the trader said.

The yuan dropped 0.7% on the Chinese central bank's weaker-than-expected mid-point fix. More lockdowns in the country further marred sentiment.

Beijing's most populous district urged residents to stay at home on Monday, while at least one major district was locked down.

Chinese equities and Hong Kong shares sank 1% and 2.5%, respectively.

The dollar index edged up 0.2% on poor risk mood. Minutes of the U.S. Federal Reserve's latest meeting are due mid-week.

Recent relatively hawkish comments from several Fed officials have helped the safe-haven dollar stabilise to an extent. Investors will be parsing through the minutes for more cues on the Fed outlook.

An uptick in U.S. benchmark yields should help support the dollar. 10-year U.S. yield is up almost 10 basis points to 3.7896% from an over one-month low hit last week.

Meanwhile, oil prices and India's latest forex reserve should support the rupee.

Oil prices tumbled, with Brent crude futures down to $86.5 per barrel on China demand concerns.

India's foreign exchange reserves climbed $14.7 billion for week ended Nov. 11 to $544.72 billion in another positive for the currency.

KEY INDICATORS: ** One-month non-deliverable rupee forward at 81.9; onshore one-month forward premium at 14.6 paise ** USD/INR NSE NOT AVAILABLE futures closed on Friday at 81.73 ** USD/INR forward premium as of Nov. 18 for end current month is 2.5 paise ** Dollar index at 107.17 ** Brent crude futures at $86.9 per barrel ** Ten-year U.S. note yield at 3.79% ** SGX Nifty nearest-month futures down 0.5% at 18,257 ** As per NSDL data, foreign investors bought net of $193.9 mln Indian shares on Nov. 17

** NSDL data shows foreign investors bought net of $64.1 mln Indian bonds on Nov. 17 (Reporting by Anushka Trivedi in Mumbai; Editing by Dhanya Ann Thoppil)