MUMBAI, Dec 22 (Reuters) - The Indian rupee ticked up slightly on Friday aided by a rise in most Asian currencies, as the dollar index lingered near its lowest level since August.
The rupee was at 83.25 as of 10:50 a.m. IST, up slightly from its close at 83.2775 in the previous session. The local unit oscillated in a tight range between 83.2375 and 83.26 during early trading.
Asian currencies were mostly higher between 0.1% to 0.4%.
However, the rupee's gains were limited by the dollar demand from importers, including local oil companies, a foreign exchange trader at a state-run bank said.
Price action on the rupee is likely to be limited in the 83.20-83.30 range, the trader added.
The dollar index was last quoted steady at 101.8 after falling to 101.73 overnight, its lowest level since August, amid a revival in risk appetite that supported global equities.
Indian equity indexes rose, tracking Asian and U.S. peers, with the S&P500 Index logging gains of about one percent on Thursday.
A slightly weaker than expected U.S. GDP growth number for the third quarter also weighed on the dollar. The world's largest economy grew by 4.9% in the quarter, against expectations of 5.2%, according to economists polled by Reuters.
Both technical and global factors support some appreciation of the rupee, said Dilip Parmar, a foreign exchange research analyst at HDFC Securities.
The rupee may remain muted on Friday, but could see some gains over the last few trading sessions of the year, Parmar added.
Investors now await U.S. personal consumption expenditure (PCE) inflation data, the Federal Reserve's preferred inflation gauge, due later on Friday.
Data is expected to show that month-on-month core PCE inflation remained flat at 0.2% in November, according to a Reuters poll. (Reporting by Jaspreet Kalra; Editing by Dhanya Ann Thoppil)
