MUMBAI - The Indian rupee fell on Friday, pressured by a jump in the dollar index in light of stronger-than-expected producer price index (PPI) data but traders expect exporters' dollar sales to limit the currency's decline.

The rupee was at 82.9075 against the U.S. dollar as of 10:10 a.m. IST, weaker by 0.1% compared with its close at 82.8175 in the previous session.

The dollar-rupee pair was "quite well bid" in early trading, a foreign exchange salesperson at a foreign bank said.

"Expect (USD/INR) to go near to 83, where exporters will be active," which should help cap the rise, the salesperson said.

The 10-year U.S. Treasury yield was little changed in Asian trading hours after jumping 10 basis points on Thursday after data showed that the U.S. PPI for final demand rose 0.6% last month, higher than the 0.3% rise forecast by economists polled by Reuters.

Month-on-month growth in U.S. retail sales also surprised to the upside while initial jobless claims came in lower than expected.

The data prompted investors to pare odds of a June rate cut by the Federal Reserve to 61% from 74% a week earlier, according to CME's FedWatch tool.

Forex traders will keep an eye on potential inflows related to the rejig of an FTSE index which is expected to lead to $1.7 billion inflows into Indian equities, according to Nuvama Alternative & Quantitative Research's calculations.

Most Asian currencies fell, with the Korean won down 0.9%, leading losses. The dollar index was last quoted slightly higher at 103.4 after rising 0.5% overnight, boosted by the rise in U.S. bond yields.

Beyond the opening move, the rupee is unlikely to see large swings and stick to its pattern of hovering in tight intraday range, Apurva Swarup, vice president at Shinhan Bank India, said.

(Reporting by Jaspreet Kalra; Editing by Mrigank Dhaniwala)