The rupee hits a more than three-week low of 54.65 in opening deals before currently trading at 54.53/54 versus its Thursday's close of 54.25/26.
Traders say broad dollar strength versus other major currencies hurting rupee with the pair expected to trade in a range of 54.45 to 54.72 during the day.
Asian currencies also mostly trading weaker compared with the dollar.
The dollar remained at a lofty perch against its Japanese counterpart on Friday, after breaking above the 100 yen level in the previous session for the first time since April 2009. The Sensex will be watched for cues on foreign fund flows during the day. Shares recover marginally to trade up 0.2 percent
The factory data for March due around 11 a.m. and the consumer price inflation data for April due on Monday will be watched for cues on the future course of monetary policy.