Indian rupee opens tad lower; retail inflation data, flows eyed

A customer hands Indian currency notes to an attendant at a fuel station in Mumbai, India, August 13, 2018. REUTERS/Francis Mascarenhas/File Photo

MUMBAI, Aug 12 (Reuters) - The Indian rupee opened marginally lower to the U.S. currency on Friday, as traders awaited the retail inflation data and eyed whether there will be any follow-through dollar demand.

The rupee was trading at 79.6750 per dollar by 0332 GMT, compared to 79.63 in the previous session.

** Data due later in the day expected to show India inflation rate eased in July, but remained above the Reserve Bank of India's (RBI) upper tolerance limit. read more

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** Rise in Treasury yields and dollar index rebound to support USD/INR pair.

** Fed officials continue to push back against expectations of less hawkish stance. read more

** Long weekend to deter short dollar positions. Indian forex and money markets shut on Monday and Tuesday.

**"Have to see whether the big dollar demand we saw yesterday, likely for oil and defence related, will continue today," a trader at a state-run bank said.

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Reporting by Nimesh Vora; Editing by Rashmi Aich

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