The Rupee closed lower on Friday and posted a weekly loss, as steady dollar demand from corporates and in the non-deliverable forwards market chipped away at gains fuelled by aggressive central bank intervention. The currency fell 0.6% on the week, reversing course after rising more than 1% last week when the central bank stepped in to shore it up from record lows. India's foreign exchange reserves stood at nearly $689 billion as of December 12, per central bank data. Dollar-rupee forward premiums meanwhile continued to retreat with the 1-year implied yield down about 10 basis points at 2.74%. Traders pointed to cutting of stop-losses on paid positions that amplified the fall in premiums after the RBI's announcement of an FX swap eased concerns over excess dollar liquidity in the system. In broader markets, Asian currencies were mostly range bound while the dollar index lumbered near a two-month low and was on course to log its fourth weekly fall in the last five weeks. The Japanese yen softened against the greenback on Friday as investors remained on watch for potential intervention to shore up the currency, while the dollar dipped slightly against the euro in thin trading volumes. The yen has remained on the back foot despite a Bank of Japan interest rate hike last week, on concerns about expansive fiscal policy in the country. Against the Japanese yen , the dollar was last up 0.42% on the day at 156.44. The dollar index , which measures the greenback against a basket of currencies including the yen and the euro, rose 0.02% to 97.96, with the euro up 0.04% at $1.1782. Sterling weakened 0.14% to $1.3504. The greenback has weakened this year as investors price in further Federal Reserve rate cuts while other central banks are expected to hold rates steady. Fed officials are balancing a weakening labor market against concerns about inflation that continues to run above the central bank’s 2% annual target. Fed funds futures traders are pricing in between two and three 25 basis point cuts next year, with the first possible in March. Oil prices fell by more than $1 a barrel on Friday as investors weighed a looming global supply glut and a reduced war risk premium, amid hopes of a Ukraine peace deal ahead of talks this weekend between Ukrainian President Volodymyr Zelenskiy and U.S. President Donald Trump. Brent crude futures fell $1.03 or 1.65% to $61.21 per barrel by 11:42 a.m. EDT (1642 GMT). U.S. West Texas Intermediate (WTI) crude fell $1.05 or 1.8% to $57.30.......