The Indian rupee was down slightly on Thursday but traders expect the local unit to stay put in its narrow range supported by likely dollar sales from exporters.
The rupee was at 83.3450 against the U.S. dollar as of 11:40 a.m., slightly lower than its previous close at 83.3250.
Asian currencies were mostly weaker with the Indonesian rupiah leading losses down by 0.6%. The dollar index was largely steady in Asia but fell to its lowest in over three months overnight.
The rupee is likely to keep hovering in its routine 5-10 paisa range, a foreign exchange trader at a foreign bank said.
"There are multiple orders (from exporters) to sell dollars near 83.35 levels," the trader added.
The 10-year U.S. treasury yield inched higher in Asia to 4.28% but is on course for its largest monthly decline in more than two years as softening in U.S. economic data cemented bets that the U.S. Federal Reserve is done hiking policy rates.
Fed futures are pricing in slightly more than 100 basis points of rate cuts in 2024, most likely starting in May.
The rupee could see "another day of lacklustre trade", Dilip Parmar, a foreign exchange research analyst at HDFC Securities, said.
While the dollar index has dropped more than 3.5% in November so far, the rupee has largely remained on the sidelines in the face of strong local dollar demand, traders said.
Investors now await India's GDP and U.S. inflation data due later in the day.
Core personal consumption expenditure (PCE) inflation in the United States likely moderated to 0.2% month-on-month in October, down from 0.3% in September, according to a Reuters poll. (Reporting by Jaspreet Kalra; Editing by Sohini Goswami)