The Rupee posted its strongest single-day gain in over three years on Friday, rising above the 90-per-dollar mark late in the session, as the central bank intervened to shore up the currency and curb speculative bets, traders said. The rupee closed at 89.27 per dollar, rising more than 1% on the day. It also gained the most week-on-week since June with an advance of 1.2%. Traders pointed out that a large state-run bank heavily sold dollars, most likely on behalf of the RBI, near the close of the spot market session at 3:30 p.m. IST. While volatility could remain elevated next week as trading liquidity thins, the rupee should hold in a 89.10-89.95 range, Parmar said. Earlier in the day, the rupee had lumbered between modest gains and losses, influenced largely by corporate activity and modest declines in Asian currencies. The dollar index was last up 0.2% at 98.66 while Asian currencies were mostly lower, led by the over 1% slump in the Japanese yen after the Bank of Japan delivered a widely expected rate cut. Meanwhile, U.S. dollar/Indian rupee forward premiums rose to three-year peaks on Friday, spurred by excess dollar liquidity, traders unwinding positions and hedging demand in the non-deliverable forward market. The yen weakened in volatile trade on Friday after the Bank of Japan delivered a widely expected rate hike, while its governor offered few hints on the timing of future increases even as he left the door open to further tightening. The yen initially fell against the dollar after the BOJ raised its policy rate to 0.75% from 0.5% in a move that had been well telegraphed by policymakers, prompting traders to sell the currency on the fact. Losses in the Japanese currency extended following BOJ Governor Kazuo Ueda's post-meeting press conference, where he remained vague on the exact timing and pace of future interest rate hikes. It was last 0.6% weaker at 156.53 per dollar. The euro rose to a record high of 183.25 yen . Sterling gained 0.52% to 209.16 yen . In Friday's statement, the BOJ maintained its view that underlying inflation will converge around its 2% target in the latter half of its three-year projection period through fiscal 2027. Overnight, the dollar had briefly weakened following a sharp and unexpected fall in U.S. inflation, but investors were not sure how far to trust the data since collection was interrupted by the U.S. government shutdown, and the move soon retraced. Sterling round-tripped to sit at $1.3374 after the BOE cut interest rates to 3.75%, as expected, but the decision was closer-run than the market had anticipated, which may limit the room for further easing. The euro was flat at $1.1719 in Asia, weighed down because European Central Bank chief Christine Lagarde offered no forward guidance and said all options were on the table, pushing back against more hawkish members.Oil prices were little changed on Friday and poised for a second straight weekly decline as a potential supply glut and prospects of a Russia-Ukraine peace deal offset concern over disruptions from a blockade of Venezuelan oil tankers. Brent crude futures were up 3 cents, or 0.05%, at $59.85 a barrel by 1105 GMT while U.S. West Texas Intermediate crude was down 3 cents, or 0.05%, at $56.12.......