MUMBAI, Nov 16 Reuters The Indian rupee weakened on Thursday tracking its Asian peers lower but U.S. dollar sales from staterun banks, likely on behalf of clients, limited the downside for the local unit.

The rupee was at 83.2125 against the U.S. dollar as of 1050 a.m. IST, compared with its close at 83.1425 in the previous session.

The rupee had logged its best day in nearly two months on Wednesday.

Asian currencies fell, with the Malaysian ringgit leading losses down by 0.8. The dollar index was higher at 104.48, drawing support from betterthanexpected retail sales numbers in the United States.

U.S. retail sales fell 0.1 monthonmonth in October compared with an expected 0.3, according to a Reuters poll. Further, data for September was revised to show sales increasing 0.9 from the previous 0.7.

The 10year U.S. treasury yield also reclaimed the 4.5 handle after having receded lower on bets that the Federal Reserve would begin easing policy rates next year.

While the rupee volatility has increased since last Friday, it remains within a range of 83 to 83.30, Amit Pabari, managing director at FX advisory firm CR Forex, said.

The domestic currency had plunged to its lifetime low of 83.42 on Friday.

Dollar sales from staterun banks on Thursday, likely on behalf of clients, helped limit the rupee39;s losses, a foreign exchange trader at a bank said.

The rupee has returned to its range and that is likely to keep holding, the trader added.

Investors now await U.S….