MUMBAI, Sept 13 Reuters The Indian rupee rose on Friday and dollarrupee forward premiums climbed on renewed hopes of a 50basispoint rate cut by the Federal Reserve next week, which also helped lift most Asian currencies.

The rupee was up 0.05 at 83.9250 as of 1020 a.m. IST, compared with its close at 83.9650 in the previous session.

The currency saw some relief after hovering close to the 84 mark for much of the week.

Reports from the Financial Times and the Wall Street Journal signalled that the Fed39;s decision next week to cut rates by 25 or 50 bps was likely to be a close call.

U.S. bond yields and the dollar index fell as investors raised the odds of a 50 bp cut to 43, up from 18 a day earlier, according to CME39;s FedWatch tool.

Asian currencies rose, with the Korean won, up 0.8, leading the gains.

The shift also aided dollarrupee forward premiums, with the 1year implied yield rising 4 basis points to 2.27, the highest since May 2023.

Interest in building paid positions on far forwards is likely to continue but would prefer to pay on dips at current levels given the rise in recent sessions, a trader at a foreign bank said.

DBS Bank expects the Fed to deliver a 25bp cut next week but said the U.S. central bank is likely to be more explicit than its counterparts regarding its multiple rate cut trajectory over 20252026, keeping pressure on the dollar.

Despite the positive cues, the rupee will continue to be rangebound as importers39; dollar appetite remains…