The Chinese yuan held steady against the US dollar on Friday as Chinese government bond yields rose across the curve, following hints from the central bank that it could engage in large-scale bond sales.

The Indian rupee is expected to do well on Friday in the wake of the dollar's fall ahead of an employment report that should give hints about the possibility of the Federal Reserve cutting interest rates later this year. The rupee fell to 83.56 on Thursday before recovering. The local currency fluctuation margin over the past three days has narrowed to around 83.40-83.55