Indian rupee erased the intraday gains and ended 17 paise lower at 74.05 per dollar, amid volatile trade seen in the domestic equity market.
It opened higher at 73.79 per dollar against previous close of 73.88 and traded in the range of 73.76-74.07.
At 12:56 IST, the Sensex was down 3.70 points or 0.01% at 44256.04, and the Nifty was up 5.90 points or 0.05% at 12992.90.
Oil prices were mixed on Friday in quiet trade due to the U.S. Thanksgiving holiday, with West Texas Intermediate (WTI) dropping more than 1% amid concerns about oversupply and doubts about a vaccine to end the coronavirus pandemic.
The dollar held steady in thin trade on Friday but was on track for weekly losses against a basket of major currencies as it remained under pressure on improving risk appetite.