The rupee inched to a slightly higher close on Friday, taking advantage of a dollar pause before a raft of economic data. The rupee ended at 43.5175/5225 per dollar at 1130 GMT, a shade stronger than Thursday's finish at 43.5300/5350, and gained just 0.2 percent on the week after touching a near-two-week peak of 43.4975/5075 on Tuesday.
"The US data coming out could move the dollar either way so nobody wants to run too large a position before that," a trader at a foreign bank said.
Foreign institutional investors have ploughed about $5 billion into Indian stocks this year and foreign exchange traders are watching the inflows for upward pressure on the rupee.
On the charts, one technical trader said resistance for the rupee was at 43.48 and a break there would send it back towards a five-year peak at 43.30, seen in early February.
The rupee took the data in its stride but traders were looking for signs of whether oil-led and internal demand pressures might prompt the central bank to raise its short-term interest rate when it holds its quarterly review on July 26.
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