The rupee dropped by 6 paise to 87.18 against the US dollar as early trading on Friday was influenced by the weak global sentiments over trade-linked uncertainties and persistent foreign fund outflows from domestic equities. However, a slide in the dollar index and lower crude oil prices helped limit losses to the Indian currency, say forex traders.
The interbank foreign exchange market saw the rupee open at 87.13 and weaken further to 87.18 against the greenback in early trade, a fall of 6 paise from the previous close level.
The rupee day ended 87.12 against the dollar after a three-day rally and 6 paise down from the day- earlier close, having gained 31 paise over three days in the previous run.
The dollar index, which gauges the US currency in comparison to a basket of six emerging currencies, was lower by 0.04 percent to 103.99, while the international crude benchmark brent hardened a meager 0.20 percent but remained at a six-month low of USD 69.60 per barrel position in futures.
In the domestic equity market, the 30-share BSE Sensex was down by 116.64 points, or 0.16 percent, at 74,223.45 points, while the Nifty slipped 19.30 points, or 0.09 percent, to end at 22,525.40 points.
According to the exchange data, foreign institutional investors sold over Rs 2,377.32 crore in net terms.
On the global macro front, traders are likely to keep their eyes glued to the comments of Federal Reserve Chairman Jerome Powell, as well as the Fed balance sheet due on Friday.
Meanwhile, President Donald Trump announced he has delayed the 25 percent tariffs on most goods from Mexico for one month following a conversation with the country's president.
'Trump's statement comes after Commerce Secretary Howard Lutnick indicated that tariffs on both Canada and Mexico would "likely" be postponed.
