MUMBAI, Dec 5 (Reuters) - The Indian rupee was nearly unchanged on Thursday and held in a narrow range, with traders awaiting the central bank's decision on whether to cut interest rates to support slowing growth.

The rupee , which has moved in a less than three paisa range so far during the session, was last quoted at 84.7350 to the U.S. dollar, barely changed from Wednesday.

Other Asian currencies were up between 0.1% and 0.4% on the day, helped by growing expectations that the Federal Reserve will lower rates this month.

The rupee, which hit an all-time low of 84.7575 on Tuesday, has been struggling amid a slowdown in India's growth, as seen in the July-September quarter, and uncertainty over the impact of U.S. President-elect Donald Trump's policies on emerging market currencies.

In light of these challenges, Anil Bhansali, managing director at advisory firm Finrex Treasury Advisors, recommends that the firm's exporter clients hold on to their hedges, while importers take advantage of dips on the dollar/rupee pair.

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Friday will likely be a key day to gauge the rupee's near-term direction. The Reserve Bank of India (RBI) will announce its decision on interest rates, followed by the U.S. November monthly jobs report.

A majority of economists expect the RBI to keep rates on hold amid high inflation and weakness in the rupee. A handful, which includes Nomura, reckon that recent growth considerations will prompt the central bank to cut rates.

"If there is a rate cut, you will definitely see a quick move up (on dollar/rupee pair), at least initially," a currency trader at a bank said.

The November U.S. jobs report will provide cues on whether the Fed will lower rates at its Dec. 17-18 meeting. Currently, the odds are heavily in favour of the Fed cutting rates by 25 basis points.

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https://www.reuters.com/markets/currencies/rupee-narrow-range-ahead-rbi-rate-decision-asian-peers-rise-2024-12-05/