A surging American currency in the overseas market and losses in the domestic equity markets put some pressure on the rupee, forex dealers said.
At the interbank foreign exchange market, the rupee opened at 73.63 and dropped to a low of 73.73 in the day trade.
Forex traders said foreign fund outflows and a negative trend in domestic equities is likely to weigh on the rupee.
Forex traders said the rupee traded in a narrow range between intra-day high of 74.30 and a low of 74.43, as investors are awaiting the RBI's monetary policy meeting outcome fo further cues.
Market participants await fiscal deficit and eight core-infra numbers data ahead of next weeks' RBI policy meet for further cues.
The appreciation comes as global risk sentiments rebounded, while the US dollar declined reacting to the dovish Federal Open Market Committee.
So far this week, the rupee has been consolidating in the range of 74.30 to 74.50, looking for a fresh trigger to get a clear direction.