Non-deliverable forwards indicate rupee will open at around 81.84-81.88 to the dollar, compared with 81.8850 in previous session.

Rupee is on a three-week winning run, helped by foreign equity inflows and speculative positions, according to traders. It was the first time in two months that it has managed a weekly close of above 82.

"U.S. jobs has helped arrest the dollar's slide, but then there will be few buyers (of USD/INR) at least at open, based on rupee's near-term trend," a trader at a private sector bank said.

Odds that the Fed will raise rates by 25 basis points at its May meeting climbed to near 70% on the back of data that showed that hiring by U.S. employers remained robust, pushing the unemployment rate back down to 3.5%. Further, annual wage growth slowed but remained too high to be consistent with Fed's inflation target.

"The labor market remains tight and combined with our expectation for a 0.39% month-on-month increase in core CPI (consumer price index), we continue to expect the Fed to deliver 25bp at the May meeting," Morgan Stanley said in a note.

The U.S. inflation data is due this Wednesday. Economists polled by Reuters expect a 0.3% month-on-month increase in the CPI and a 0.4% rise in core CPI.

U.S. yields rose, with the 2-year yield now at 3.96%, and the dollar recovered against its major peers. Risk appetite has held up well to the increased chances of another Fed rate hike.

U.S. equity futures were a tad up to begin the week and Asian equities were mostly higher.

KEY INDICATORS: ** One-month non-deliverable rupee forward at 81.98; onshore one-month forward premium at 13 paisa ** USD/INR NSE April futures settled on Thursday at 81.99 ** USD/INR April forward premium at 7.25 paisa ** Dollar index up at 102.16 ** Brent crude futures at $85.1 per barrel ** Ten-year U.S. note yield at 3.38% ** SGX Nifty nearest-month futures little changed at 17,708 ** As per NSDL data, foreign investors bought a net $100.1mln worth of Indian shares on Apr. 5

** NSDL data shows foreign investors sold a net $138.4mln worth of Indian bonds on Apr. 5

(Reporting by Nimesh Vora; Editing by Varun H K)