The Indian rupee fell 48 paise to 74.97 against the US dollar (20.41 versus the UAE dirham) on Friday, as a muted trend in the Indian equities and a firm American currency weighed on investor sentiment.

At the Indian interbank foreign exchange, the rupee opened on a weak note at 74.97, registering a decline of 48 paise from the last close. On Thursday, the rupee had closed at 74.49 against the US dollar.

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, rose 0.39 points to 96.75.

On the Indian equity market front, the 30-share Sensex closed at 1687.94 points or 2.87 percent lower at 57,107.15, while the broader NSE Nifty declined 509.8 points or 2.9 percent to 17,026.45.

The Indian rupee started on a weaker note on Friday morning trade, tracking the strength of the dollar. 

The dollar rose in the previous session lifted by hawkish Federal Open Market Committee (FOMC) minutes and upbeat data in the US.

"Asian currencies and equities were trading mostly weaker on Friday and will weigh on sentiments," the note added.