The Rupee opened weaker on Friday, despite a weaker dollar, though traders warn the relief may be short-lived as persistent merchant and portfolio outflows keep pressure on the currency. The rupee slipped to an all-time low of 90.4675 in the previous session with traders pointing to heightened dollar demand on account of corporate payments and positional adjustments after its previous record low of 90.42 gave way. Weakness in portfolio flows has also been a sore spot for the rupee alongside the lingering uncertainty about U.S.-India trade negotiations. Foreign investors have net sold nearly $2.5 billion worth of Indian stocks and debt so far this month. Indian Prime Minister Narendra Modi said he spoke with U.S. President Donald Trump by phone on Thursday, as New Delhi seeks relief from 50% U.S. tariffs. It was unclear if a trade deal could be hammered out before the end of the year, an official told Reuters on the condition of anonymity. Elsewhere, the dollar lingered near a two-month low against a basket of major peers, while Asian currencies were trading mixed. A less-hawkish-than-feared U.S. Federal Reserve outlook and the central bank's announcement of liquidity injections weighed on the dollar this week, putting it on course for its third consecutive weekly drop. The rupee, meanwhile, is on track to end the week down by about 0.5%. he U.S. dollar headed for its third straight weekly drop on Friday, hurt by the prospect of rate cuts next year after the Federal Reserve pushed back against hawkish market bets, lifting the euro and sterling to their highest since October. The euro was steady at $1.1741 in early Asian hours after a 0.37% rise in the previous session, while the pound was marginally firmer at $1.33955. Both are poised for their third straight week of gains as the dollar remains under pressure. The Fed cut rates as expected this week but the comments from Fed Chair Jerome Powell and the accompanying statement were viewed by investors as less hawkish than expected and reinforced dollar selling momentum. Investors face uncertainty over the path of U.S. monetary policy next year as inflation trends and labour market strength remain unclear, with traders pricing in two rate cuts in 2026 in contrast with policymakers who see only one cut next year and one in 2027. Also in the spotlight for markets is the question of who will become the next Fed Chair and how that will affect the growing worries about the Fed's independence under Trump. The dollar index , which measures the U.S. currency against six major rivals, was at 98.34, set for a weekly drop of 0.7%. The index is down over 9% this year, on pace for its steepest annual drop since 2017. The Japanese yen took advantage of the soft dollar and is poised to snap its two-week losing streak and eke out a small gain for the week. It fetched 155.61 per dollar ahead of next week's Bank of Japan meeting where the broad expectation is of a rate hike. The Australian dollar was steady at $0.6667 and the New Zealand dollar 0.14% firmer at $0.5815 as investors contend with diverging rates path with the next move in domestic interest rates likely to be up, even as are expected to keep falling. Elsewhere, the Swiss franc strengthened to 0.7942 per U.S. dollar in Asian hours after a strong session overnight. The Swiss National Bank left its at 0% on Thursday and said a recent agreement to reduce U.S. tariffs on Swiss goods had improved the economic outlook, even as inflation has somewhat undershot expectations. Oil prices rose on Friday as the prospect of the U.S. intercepting more Venezuelan oil tankers deepened supply concerns, but remained on track for a weekly decline amid optimism over a possible Russia-Ukraine peace agreement. Brent crude futures rose 29 cents, or 0.5%, to $61.57 a barrel by 0115 GMT, and U.S. West Texas Intermediate crude was at $57.91 a barrel, up 31 cents, or 0.5%.......