MUMBAI, June 26 (Reuters) - The Indian rupee will largely take its cues from other major Asian currencies and whether inflows into local equities continue in the last week of the quarter, while local bond yields are expected to remain largely rangebound.

The rupee ended at 82.0350 per U.S. dollar on Friday, posting a decline of 0.1% on the week but largely avoiding the selloff in Asian currencies prompted by the hawkish Federal Reserve.

The divergent outlook on U.S. and China interest rates pushed the yuan to the lowest since November last year, a position that the Japanese yen is in for a similar reason.

The interest rate differentials-prompted losses on Asian currencies will be a factor to watch, said Anil Bhansali, head of treasury at Finrex Treasury Advisors.

Rupee traders will also keep an eye on U.S. data and equity flows, Bhansali said.

U.S. initial jobless claims data will warrant attention alongside the first quarter GDP data and the core inflation numbers, all of which will come in towards the end of the week.

The rupee is expected to remain in the range of 81.90 to 82.40 next week.

Asian markets on Monday did not see much of an impact from the turmoil in Russia. The safe haven dollar was down versus its peers, U.S. equity futures were slightly higher and most Asian currencies inched up.

Meanwhile, the benchmark bond yield ended at 7.0726% on Friday, having risen three basis points last week.

Traders expect the benchmark yield to move in the 7.02%-7.10% range this week.

Bond yields rose last week as central banks maintained their hawkish stance through their policy actions and commentary.

The Reserve Bank of India kept its key lending rate steady for a second straight meeting in June, but signalled monetary conditions will remain tight for some time as it looks to attain the 4% inflation target.

The internal members of the RBI's monetary policy committee (MPC), perceived as far more hawkish than their external counterparts, reiterated the pause was only for that specific policy and that future rate actions would depend on evolving macroeconomic data, especially on inflation.

But last week, three external MPC members told Reuters in separate interviews that while a narrower interest rate differential with the U.S. is unlikely to prompt the RBI to raise rates, a rebound in inflation certainly could.

Federal Reserve officials have already hinted at another 50 basis points worth of rate hikes in 2023, while Chair Jerome Powell has said inflation pressures continue to run high and the process of bringing it back to 2% "has a long way to go".

Last week, the Bank of England raised interest rates by a bigger-than-expected half-a-percentage-point to 5%, the highest since 2008 and its largest rate hike since February, following stubborn inflation and wage growth.

"The environment for interest rates has soured by the stubborn core inflation and the hawkish stance adopted by the central bankers," Sandeep Bagla, CEO at Trust Mutual Fund said.

"It is now clear that any hint of higher inflation is likely to lead to another series of hawkishness and possible rate hikes."

Still, traders do not expect any major upside level to be breached in the last week of the quarter as purchases from banks for balance sheet management may act as a support.

KEY EVENTS:

• US June consumer confidence data - June 27, Tuesday (7:30 p.m.)

• US weekly jobless claims - June 29, Thursday (6:00 p.m. IST)

• US May core PCE price index - June 30, Friday (6:00 p.m. IST)

• US Q1 GDP final - June 30, Friday (6:00 p.m. IST) (Reporting by Nimesh Vora; editing by Eileen Soreng)