The Rupee opened slightly stronger on Friday ahead of the central bank's interest rate decision, supported by a brief recovery in the prior session that helped cool the recent bearish run. The rupee had slid to an all-time low of 90.42 on Thursday before staging a recovery, helped by what one banker said was "natural" dollar selling. The banker said that the quick run higher on dollar/rupee to near 90.50 "likely convinced a section of exporters and probably a few speculative accounts that this was a good level to sell into." Before Thursday's recovery, the currency had declined more than 1% and was on a six-day losing streak, amplifying concerns about the underlying demand-supply imbalance in dollars. The primary focus now shifts to the Reserve Bank of India's rate decision in a couple of hours, followed by a press conference, where the RBI chief is expected to be asked questions on the rupee's recent decline. The overnight index swap market is pricing in virtually no chance of a rate cut. At the same time, economists are more divided on the outcome, with opinions split between a status quo move and a 25-basis-point reduction. The RBI is likely to take a pause on interest rate cuts, despite the low inflation and robust GDP at this point, MUFG Bank said in a note. The U.S. dollar languished not far from a five-week low against its major peers on Friday as investors braced for a Federal Reserve rate cut next week. Markets widely expect a quarter point reduction when the policy-setting Federal Open Market Committee meets on December 9-10, and a focus will be on any signals about how much additional easing lies ahead. The dollar index , which measures the currency against six rivals, was flat at 99.065 early in Asia. A small gain overnight snapped a nine-day losing streak, but the index had dipped to a five-week low of 98.765 earlier that session, and it remains on course for a 0.4% decline this week. The data picture remains incomplete following the record-long government shutdown delayed some releases and prevented other data from ever being collected. Crucial monthly payrolls figures would ordinarily be published later on Friday, but have been delayed, and the previous month's numbers were never released. The dollar was little changed at 155.18 yen . The euro was flat at $1.1647 and sterling held steady at $1.3326 after easing back from Wednesday's six-week peak in the previous session. The Aussie was stable at $0.6609 after jumping to a two-month high of $0.6624 on Thursday. Canada's loonie was little changed at C$1.3961 per greenback, while the Swiss franc was steady at 0.8035 per dollar after dropping back sharply from Wednesday's two-week high of 0.7992 in the overnight session. WTI oil prices were heading for weekly gains of close to 2% in early trading on Friday, supported by an expected Federal Reserve interest rate cut, escalating U.S.-Venezuela tensions and stalled peace talks in Moscow. Prices were little changed at market open on Friday, with Brent crude up 6 cents, or 0.09%, at $63.32 per barrel by 0104 GMT. U.S. West Texas Intermediate was up 4 cents, or 0.07%, at $59.71 a barrel.......
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