Forex traders said, besides the US-China trade concerns, foreign fund outflows, heavy selling in domestic equities and rising crude oil prices also kept pressure on the Indian rupee.
Despite a drop in global crude prices and weakening of the greenback, weak domestic equities snapped the three-day winning streak of the Indian currency.
Positive expectations on the US-China trade tariff agreements helped the strengthening of the greenback.
Meanwhile, the benchmark BSE Sensex climbed 19.16 points, or 0.05 per cent, to trade at 35,775.42 in early trade Thursday.
Forex traders said strengthening of the US dollar against some currencies overseas and sustained foreign fund outflows weighed on the local unit.
The rupee Friday weakened by 10 paise to close at 71.17 against the US dollar.
Forex dealers said the dollar's gains against some other currencies overseas too weighed on the rupee sentiment.
The Indian currency started depreciating from Monday ever since an increase in crude oil prices.
After opening lower at 73.91, the rupee had plunged to the day's low of 74.14 as investors turned nervous over reports of rift between the RBI and the government.
At the Interbank Foreign Exchange, the rupee opened up at 73.18 and further advanced to quote 42 paise higher at 73.15 on increased selling of the American currency by exporters and banks.
On Friday, the rupee had settled 29 paise higher at 73.32 against the US dollar, amid a weakening greenback.
At the Interbank Foreign Exchange, the rupee opened lower at 73.62 and slipped further to 73.64 against the dollar, showing a fall of 3 paise.
A falling rupee directly impacts India’s oil import bill and given that the market is deregulated, the final impact is borne by the end consumer.
The rupee has been caught in a free fall for last few sessions and tagged among the worst performing currencies in Asia having weakened by a steep 13.81 per cent since the beginning of the year.
The company, which sells models like City and Amaze, has been holding the price hike hoping the currency would recover from record low against the dollar.