Non-deliverable forwards indicate the rupee will open at around 81.93-81.96 to the U.S. dollar, compared with its spot close of 82.1750 in the previous session.
Meanwhile, the dollar index hit a five-week low on Thursday and saw its worst one-day session since March 13 after a hawkish European Central Bank (ECB) signalled more rate hikes.
The rupee should see some appreciation on Friday, which should also benefit from the yuan's move, a trader with foreign bank said.
The rupee has gained about 0.35% so far this week, benefiting from likely corporate dollar inflows.
14** NSDL data shows foreign investors sold a net $2.5mln worth of Indian bonds on Jun.
Persons:
Srinivas Puni
Organizations:
U.S . Federal, U.S ., European Central Bank, QuantArt, Brent, Sethuraman NR, Thomson
Locations:
BENGALURU, Bengaluru