Non-deliverable forwards indicate the rupee will open at 83.48-83.50 to the U.S. dollar compared with 83.52 in the previous session.
Asian currencies rose 0.1% to 0.4% and the dollar index held below the 105 handle. The offshore Chinese yuan was quoting at 7.2870 to the dollar, having weakened past 7.31 last week.
The drop in U.S. Treasury yields amid soft U.S. ISM PMI data and moderating payrolls has relieved the pressure on Asian currencies.
"The relief in Asia, particularly the yuan, probably takes out that small possibility of a new high (for dollar/rupee)," a currency trader at a bank said.
"Let's see the U.S inflation data. Won't be surprised if it barely manages to budge (dollar/rupee)."
"The direction of travel (for inflation) remains unchanged and we continue to expect lower inflation ahead," Julien Lafargue, Chief Market Strategist at Barclays Private Bank, said.
That, along with signs the U.S. economy is cooling, means the Fed could be in a position to lower interest rates in September, he said.
On interest rate cuts, Fed Chair Jerome Powell said on Wednesday the central bank will make the decisions "when and as" they are needed, pushing back on a suggestion that a September rate cut could be seen a political act ahead of the November presidential election.
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