Rupee fell 8 paise to close at 74.14 against the US dollar following an unenthusiastic trend in domestic equities and strengthening of the dollar in the overseas market.
The local currency opened at 74.18, rose to an intra-day high of 74.08 and an intra-day low of 74.26 against the US dollar during trading today at the interbank foreign exchange market today. On Thursday, it closed at 74.06 against the dollar.
Analysts told PTI that " Yields are rising on the expectation that the US Federal Reserve will start tapering its bond purchases before the end of the year and possibly begin raising interest rates next year,".
A jump in commodity prices has also fuelled the worries over short-term inflation pressures.
The dollar index was trading 0.06 per cent higher at 93.82.
Brent Crude futures, which is the global oil benchmark, fell 0.61 per cent to $78.61/barrel.
BSE Sensex concluded the day at 0.43 per cent or 254.33 points lower at 59,413.27. NSE Nifty fell 37.30 points or 0.21 per cent lower at 17,711.30 points.