The Indian rupee closed slightly lower on Friday, tracking subdued moves in its Asian peers, as investors turned their attention to a crucial U.S. labour market report due later in the day.
Inflows helped the rupee climb to an intraday high of 83.30 but "at lower levels (on USD/INR), dollar demand continues to emerge," Dilip Parmar, a foreign exchange research analyst at HDFC Securities, said.
The Monetary Policy Committee of the central bank will begin its bi-monthly review meeting on Wednesday and announce the decision on Friday. At the interbank foreign exchange market, the local unit opened at its all-time low level of 83.41 against the greenback, registering a fall of 3 paise over its previous close.
While the dollar index fell 3% in November amid a slump in U.S. yields, the rupee stayed on the sidelines and ended the month slightly weaker even as Asian currencies rallied.
The rupee ended at 83.3950 against the US dollar, lower by 0.08%, compared with its previous close at 83.3250. The local unit posted a slight monthly loss of 0.1%. The central bank "mildly" sold dollars, while a large foreign bank was seen on the buying side, likely on behalf of custodial clients, a foreign exchange trader at a private bank said.