The rupee inched up on Friday on foreign capital inflows and dollar sales by exporters eyeing the euro's recent gains against the US currency. But caution ahead of key US jobs data and wariness of the Reserve Bank of India (RBI), which has been intervening strongly in recent sessions, limited the rupee's gains, traders said.
The rupee closed at 43.4825/4850 per dollar, 0.1 percent stronger than Thursday's 43.5250/5275 close. It was unchanged on the week, held steady by a watchful RBI.
"A weaker stock market, fear of Big Brother watching, US data, weekend position squaring, all added to reduced speculative position build-up," a chief dealer at a foreign bank said.
The Indian central bank, which let the rupee gain 0.5 percent between April and June by staying on the sidelines, resumed its intervention last month after China's revaluation of the yuan by 2.1 percent lifted the rupee to a six-year peak of 43.115/135.
Traders said currency market volumes also dipped a little, with spot deals totalling $2.2 billion on Friday, down from $2.7 billion the previous day, according to data posted on The Clearing Corporation of India Ltd website, www.ccilindia.com.
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