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The Indian rupee rose against the dollar on Friday, boosted primarily by the Chinese yuan's rally that helped it recover from losses accumulated through the week.

The rupee climbed to 82.44 per U.S. dollar on Friday, up from 82.88 in the previous session. The rupee received a boost from the recovery in yuan, on hopes of relief in U.S.-China tensions and Beijing easing the pandemic curbs.

The offshore yuan rose 0.8% to 7.2684 to the dollar. China equity index, the Shanghai Composite, climbed 2.5%.

On a week-on-week basis, the rupee was barely changed. The rupee's flatlining came despite a U.S. Federal Reserve policy outcome that fuelled a move up in Treasury yields and increased the chances of a higher terminal rate.

The focus now shifts to the U.S. jobs data due later in the day and then to the critical inflation report next week.

The jobs data will help traders assess how the labour market is faring to the Fed rate hikes, while the inflation report next Thursday will assist in gauging if there has been any letup in price pressures.

"Today’s U.S. jobs data might cause some volatility, especially if wage growth numbers come out very divergent (to expectations)," said Srinivas Puni, managing director at QuantArt Market Solutions.

Economists polled by Reuters expect a 0.3% month-on-month increases in wages and 200,000 job additions.

Rupee premiums fell this week, tracking the rise in Treasury yields. The 1-year USD/INR implied forward rate dropped to 2.25% from about 2.40% last week.

The fall in forward premiums to near their lowest level in over a decade is prompting importers to opt for longer hedges, according to analysts.