The Rupee closed nearly flat on Friday as pressure from weak local stocks and elevated interbank dollar demand met likely central bank intervention to defend the currency, traders said. Maturity of positions in the non-deliverable forwards market added to the strain on the rupee on Friday, alongside a risk-off mood in global equities weighed by lingering concerns over the impact of artificial intelligence and shrinking tech sector margins. The currency's relief rally after the U.S.-India trade deal has partly faded as corporate dollar demand stayed firm and some foreign investors remained cautious on a rebound in returns from Indian equities and bonds. The pound headed for its biggest weekly loss in over two months against the euro on Friday after a turbulent week in British politics and in financial markets, which have been gripped by worries about the long-term impact of artificial intelligence. The euro, which has flat-lined against the dollar this week, is heading for a gain of 0.3% against the pound , the most since early December. It was last down 0.12% at 87.05 pence. The pound was steady at $1.362 , set for a flat performance against the U.S. currency for the week. The pound, UK bonds and stocks all suffered earlier in the week when a political crisis sparked by the Epstein affair seemed to threaten Prime Minister Keir Starmer's hold on power. However, the selling pressure subsided after the cabinet rallied behind Starmer and he never to walk away from his position. In a further setback for investor confidence, UK data on Thursday showed that the economy almost ground to a halt in the final three months of 2025. This did not shift market expectations that the Bank of England will deliver no more than two rate cuts this year, given policymakers' concern about persistent inflationary pressures. The U.S. dollar was mostly flat against peer currencies on Friday after data showed a less-than-expected increase in inflation in January, suggesting the Federal Reserve could continue to hold rates steady in the near term. The Japanese yen was set for its strongest weekly gain in a year. The euro was 0.07% lower at $1.1863 against the dollar, but was set to gain 0.4% this week. Against the Swiss franc , the dollar weakened 0.13% to 0.7684 and was on course for a weekly loss of 0.95%. The dollar's behavior reflects market positioning as it awaits fresh central bank signals on the direction of interest rates, said Olivier Bellemare, senior derivatives trader at Monex Canada in Montreal. The dollar index edged higher by 0.02% to 96.95, on track to shed 0.73% for the week. The yen has dominated activity in the foreign exchange market this week, after Japanese Prime Minister Sanae Takaichi's historic election win allayed some investor worries about the government's finances. The yen was still headed for a gain of 2.64% for the week, its largest rise since February last year, although it was down 0.15% on the day at 153.08. The yen was down 0.14% against the euro but still was headed for a 2.27% weekly jump against the single currency, its strongest performance in a year. The Australian dollar , the top-performing major currency of 2026 so far after soaring in recent weeks on a hawkish Reserve Bank of Australia, was down 0.47% at $0.705, but still headed for a 0.66% gain this week. The Canadian dollar strengthened 0.01% versus the greenback to C$1.361 per dollar, still set to drop 0.45% for the week. Oil prices held steady on Friday after data showed an overall slowdown in U.S. inflation, recovering from an earlier dip on news that OPEC+ is leaning towards a resumption in production increases. Brent crude futures gained 11 cents, or 0.16%, to $67.63 a barrel by 12:22 p.m. ET (1722 GMT). U.S. West Texas Intermediate crude was unchanged from the previous close at $62.84.......