The dollar index, which estimates the strength of the greenback against a basket of six currencies, advanced 0.27% to 91.19
On Thursday, the rupee depreciated 11 paise to 72.83 (provisional) against the US dollar, a drop in the US dollar and a fall in domestic equities.
In the interbank foreign exchange market, the local unit opened against the greenback at 72.99 and saw an intra-day high of 72.62 and a low of 72.99.
It eventually ended at 72.83 against the US currency, losing 11 paise at its previous closing.
The rupee had closed at 72.72 against the US currency on Wednesday.
The Dollar Index, which estimates the strength of the greenback against a basket of six currencies, advanced 0.27% to 91.19.
Meanwhile, global oil benchmark Brent crude futures fell 0.34% to $ 63.85 a barrel.
On the domestic equity market front, the BSE Sensex closed down 598.57 points or 1.16% at 50,846.08, while the broader NSE Nifty closed down 164.85 points or 1.08% at 15,080.75.
Foreign institutional investors were net buyers in the capital market, as they bought shares worth ₹ 2,088.70 crore as per exchange data on Wednesday.