The Indian rupee depreciated 20 paise to close provisionally at 79.84 against the U.S. dollar on August 19 on the Week-ended Friday amid a strengthening greenback overseas.
At the interbank foreign exchange market (FOREX), the local currency opened at 79.75 and moved in a range of 79.73 to 79.84 during the day. It eventually ended at 79.84 against the US Dollar, down 20 paise over its previous close of 79.64.
Forex dealers said that the US dollar index increased after investor mood being negatively impacted by remarks made by US Federal Reserve officials regarding the pace of rate increases. The dollar index, which measures how strong the dollar is relative to a basket of six different currencies, rose 0.18 percent to 107.67. Indian equity outflows of foreign funds also contributed to the local unit's decline.
According to exchange data, foreign institutional investors sold shares worth Rs. 1,706.00 crore on Thursday, making them net sellers in the capital market.
A string of U.S. central bank officials said the Federal Reserve needs to keep raising borrowing costs to bring high inflation under control.
Meanwhile, the benchmark for world oil, Brent crude futures, fell 1.02 percent to USD 95.60 a barrel.
On the Indian stock market front, The BSE Sensex closed 651.85 points or 1.08 percent lower at 59,646.15 on the local equities market, while the larger NSE Nifty fell 198.05 points or 1.10 percent to 17,758.45.