The Indian rupee ended higher on Friday, tracking strength in most of the Asian currencies, while traders focused on US inflation data next week, ahead of the Federal Reserve's interest rate decision.

The rupee ended at 82.4625 to the US dollar, compared with 82.5625 in the previous session. The rupee snapped a two-week winning streak, dropping 0.19 per cent this week.

US inflation data and the Fed's policy decision are critical for the rupee's movement, which has been rangebound, said Jigar Trivedi, senior research analyst, currencies and commodities, at Reliance Securities.

The rupee traded between 82.42 and 82.68 for the week.

Persistent foreign fund inflows into equities have helped the rupee, while the dollar index eased from two-month highs as odds of a rate hike in June have fallen.

Most Asian currencies, barring the Chinese yuan, gained on Friday.

The increase in US jobless claims strengthens the case for the Fed to pause when it meets next week. Before the quiet period ahead of the June 13-14 meeting, two Fed officials had indicated that they prefer a pause at this month's meeting.

At the meeting, the Fed will have the May US inflation print on hand, due for release on June 13. Economists polled by Reuters expect a 0.3 per cent month-on-month increase in headline consumer price index (CPI) and a 0.4 per cent rise in core CPI.

Traders will also eye Indian inflation data due on Monday after the central bank kept rates steady this week, but signalled that it was focused on tamping down inflation to its 4 per cent target.

Related Topics
comment COMMENT NOW