The rupee extended losses to 54.39/40 versus its previous close of 54.2750/2850, tracking losses in the domestic share market.
Asian shares hovered near 2013 lows and gold stayed close to a one-month high on Friday as Cyprus scrambled to find a solution to its funding crisis and concern over the health of the euro zone mounted.
Traders said fiscal year-end and month-end dollar demand from importers especially oil was seen helping the dollar.
Dealers said there were some dollar inflows seen towards the SAILBSE -0.86 % stake sale but the flows were not too large.
