The decline declined by 19 paise to 74.09 against the US dollar in opening trade on Friday, as muted domestic equities and elevated crude oil prices weighed on investor sentiments.
The local unit fell after comments made by Federal Reserve officials.
The foreign exchange was weak against the US dollar at 74.05 and fell to 74.09 against the dollar at the interbanks in early deals, registering a decline of 19 paise from the last close.
On Thursday, the rose by 3 paise to close at 73.90 against the US dollar.
The dollar index, which measures the strength of the dollar against a basket of six currencies, fell by 0.11 per cent to 94.68.
Equities are slightly down on Friday but will be bought on dips. Anil Kumar Bhansali, head of Treasury, Finrex Treasury Advisors said that the European currencies are generally up against the dollar, but the dollar index should find support near to 94.50 for a rally back to 97.00.
The global oil benchmark Brent crude futures fell by 0.08 per cent to USD 84.40 per barrel.
On the domestic equity market, the 30 share Sensex was trading 189.73 points or 0.31 per cent lower at 61,045. The NSE Nifty declined 42.80 points or 0.23 per cent to 18,215. Foreign institutional investors net sellers in the capital market on Thursday, as they offloaded shares worth Rs 1,390. According to exchange data, 85 crore were reported to have been lost.