MUMBAI: The Indian rupee closed stronger on Friday, lifted by dollar sales from local corporates and an uptick in most Asian currencies, ahead of the release of the closely watched US labour market data.

The rupee closed at 83.3725 against the US dollar, compared with its previous close at 83.4725. The currency ended up 0.1% week-on-week as well.

While the local currency came under pressure earlier this week, following an unanticipated outcome in the country’s national elections but the Reserve Bank of India’s (RBI) likely interventions helped cap losses, traders said.

The RBI expectedly kept its key policy rates unchanged on Friday and raised its economic growth outlook for the current year but kept its inflation outlook unchanged, though it warned of persistent price pressures on food.

“We continue to think that (India’s) substantially large balance of payments surplus is going to keep the (rupee) appreciation bias intact,” Citibank economists said in a note.

At the same time, the overall move in the dollar can push the USD/INR towards 84, they added.

Benchmark Indian equity indexes, the BSE Sensex and Nifty 50, recouped election result day losses, when they had slipped the most in four years, and ended the session higher by little over 2% each.

The dollar index was at 104.1, while most Asian currencies rose, with the Korean won up 0.4% and leading losses.

Meanwhile, dollar-rupee forward premiums declined with the 1-year implied yield down 2 basis points (bps) to 1.61%.

Investors now await the release of the US nonfarm payrolls report later on Friday for further cues on when the Federal Reserve may begin to ease policy rates. Investors are pricing in nearly two rate cuts this year, with the first one in September.