On Friday, the rupee remained unchanged at 83.73 versus the US dollar, despite poor equities markets and rising crude oil prices outside. According to forex dealers, the Indian rupee received support as the dollar softened versus key competitors following the US Federal Reserve's decision to keep interest rates unchanged and modest foreign capital inflows into Indian stocks.

At the interbank currency market, the local currency started at 83.74 and gradually rose to 83.73 versus the dollar, the previous day's closing level. On Thursday, the rupee fell 5 paise to 83.73 versus the US dollar.

According to Anand James, Chief Market Strategist at Geojit Financial Services, the rupee's depreciation was limited by "a likely intervention from the Reserve Bank of India, which sold dollars through state-run banks".

"The next key US economic release is the July jobs report, expected on Friday," the economist said.

Meanwhile, the dollar index, which measures the greenback's strength against a basket of six currencies, declined 0.07% to 104.13. Brent crude, the global oil benchmark, climbed 0.79% to USD 80.15 per barrel in futures trading.

In the domestic equities market, the 30-share BSE Sensex down 614.96 points, or 0.75 percent, to 81,252.59 in early trading, while the wider Nifty fell 194.80 points, or 0.78 percent, to 24,816.10.

Foreign institutional investors were net purchasers in capital markets on Thursday, purchasing shares worth Rs 2,089.28 crore, according to exchange data.

According to a monthly poll issued on Thursday, India's manufacturing sector growth fell marginally to 58.1 in July from 58.3 in June due to slower rises in new orders and output, while cost constraints and demand strength led to the sharpest increase in selling prices since October 2013.

Furthermore, as per the the official figures issued on Thursday, the government's GST receipts increased by 10.3% in July to more than Rs 1.82 lakh crore, owing to domestic transactions in goods and services.