MUMBAI, Sept 2 Reuters The Indian rupee weakened marginally on Monday and forward premiums declined, while market participants looked for cues on the pace of the Federal Reserve39;s rate cuts in a datapacked week.

The rupee was at 83.8775 to the U.S. dollar at 1029 a.m. IST compared to its previous close of 83.8625.

Other Asian currencies were down between 0.2 and 0.5, and the dollar index was little changed at 101.74.

Traders await the U.S. ISM manufacturing and services prints, along with the JOLTS job openings, ADP private payrolls and the weekly jobless claims data due this week.

The highlyanticipated nonfarm payrolls report is due on Friday.

It will not be an exaggeration to say that this Friday39;s U.S. jobs report will be most important in a long time for fx and rates, a currency trader at a bank said.

For the rupee, well, one can hope that it will at least have a bit of impact.

Fed Chair Jerome Powell39;s comments on the U.S. labour market at Jackson Hole last month have made this Friday39;s the payrolls report more significant than usual.

This week39;s jobs data will likely be a deciding factor for the Fed to start with a 25 or 50 basis points cut, HSBC Bank said in a note.

Considering all the data that is lined up, this is a makeorbreak week for the dollar, it said.

Currently, investors are pricing in a 30 probability of a 50 bps rate cut and 70 for a 25 bps.

PREMIUMS DIP

The dollarrupee forward premiums retreated slightly, with the 1year implied…