The rupee depreciated 14 paise to close at 82.84 (provisional) against the US currency on Friday as the strength of the American currency in the overseas market and a muted trend in domestic equities weighed on investor sentiments.

At the interbank foreign exchange market, the rupee opened at 82.77 against the greenback and finally settled for the day at 82.84 (provisional), registering a fall of 14 paise over its previous close of 82.70.

During the session, the domestic unit witnessed an intra-day high of 82.73 and a low of 82.85 against the American dollar.

Meanwhile, the dollar index was trading 0.59 per cent higher at 104.47.

Brent crude futures declined 1.75 per cent to $83.65 per barrel.

Also read: Crude oil futures down on US economic number

According to Anuj Choudhary, Research Analyst at Sharekhan by BNP Paribas, the Indian rupee depreciated on risk-off sentiments in global markets and a strong US dollar.

"Dollar strengthened as robust economic data from the US raised expectations that the US Federal Reserve may hold interest rates higher for longer to tame inflation," Choudhary said.

Choudhary further noted that "we expect rupee to trade with a negative bias on strong dollar and weak domestic markets.

"However, weak crude oil prices and fresh FII inflows may prevent a sharp fall in rupee. USDINR spot price is expected to trade in a range of ₹82.40 to ₹83.30," Choudhary said.

BSE Sensex ended 316.94 points or 0.52 per cent lower at 61,002.57, while NSE Nifty declined 91.65 points or 0.51 per cent to 17,944.20.

Also read: Sensex, Nifty decline half a per cent on weak global markets

Foreign Institutional Investors (FIIs) were net buyers in the capital markets on Thursday as they purchased shares worth Rs 1,570.62 crore, according to exchange data.

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