8 The rupee depreciated 6 paise to close at 81.70 (provisional) against the US dollar on Friday amid a lacklustre trend in domestic equities and firmer crude oil prices.
However, a weak dollar in the overseas market and fresh foreign capital inflows restricted the loss, forex traders said.
At the interbank foreign exchange market, the local unit opened up at 81.59 and later erased all its early gains. During the session, it witnessed a high of 81.52 and a low of 81.78.
The domestic unit finally settled at 81.70 against the American currency, registering a fall of 6 paise over its previous close of 81.64.
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, declined 0.28 per cent to 106.39.
Global oil benchmark Brent crude futures rose 0.36 per cent to ₹90.10 per barrel.
Foreign Institutional Investors (FIIs) were net buyers in capital markets as they bought shares worth ₹618.37 crore on Thursday, according to exchange data.