
The rupee closed at 83.4225 against the U.S. dollar on Friday, up from its close at 83.47 in the previous session. The local currency was down about 0.1% week-on-week.
Asian currencies climbed on a dip in U.S. bond yields, with the Korean won, up 0.9%, leading gains. The dollar index was down 0.1% at 105.18.
The rupee rose to a day's high of 83.3475 but state-run banks' bids eroded gains, a foreign exchange trader at a foreign bank said.
The U.S. non-farm payrolls report for April is due later on Friday alongside unemployment data which is likely to impact investors' expectations of when the Federal Reserve may begin easing policy rates.
Economists polled by Reuters expect that the unemployment rate was 3.8% in April, the same as March.
"We do not expect today's data to dent the bearish dollar momentum," ING Bank said in a note.
While the Federal Reserve is widely expected to keep rates unchanged in June and July, the odds of a September rate cut have risen to slightly above 60%, according to CME's FedWatch tool.'
The rupee is expected to stick to its broad range between 83.20 and 83.60 in the near-term, Gaurang Somaiya, a foreign exchange research analyst at Motilal Oswal Financial Services said.
Dollar-rupee forward premiums shed gains after rising marginally early on Friday. The 1-year implied yield last quoted flat at 1.65%.
"If the U.S. unemployment rate comes lower than expected, forward premiums may see a sharp decline," the FX trader said.
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