Rupee vs dollar: INR falls to 82.69 against US dollar

"In the first week of July, the Rupee depreciated by over 1.25 percent as this depreciation was primarily driven by the strengthening of the U.S. dollar, weaker Yuan and stop loss getting triggered which resulted into unwinding of carry trade (borrow in currency where interest rates are lower and invest where rates are higher)," said Amit Pabari, the managing director of CR Forex Advisors.

On the global front, Pabari said DXY continued to strengthen as market sentiment deteriorated due to concerns over economic data and the possibility of central banks adopting more dovish stances, despite the presence of mixed data. "There are mostly positive indicators regarding US employment, contributing to the surge in Treasury bond yields, reaching multi-month highs. Today’s US non-farm payroll (NFP) report is required to validate expectations of a Federal Reserve interest rate increase beyond July. If DXY closes above 103.50 then it would move towards 105-105.50 levels in the coming days," he added.

Both, Indian benchmark indices were trading in the red on Friday. While Sensex was trading 0.62 percent, the Nifty 50 was trading 0.66 percent down around noon.