The rupee was closing in to its lowest level in a month as dollar was strong globally and stocks were weak, said dealers.
The Indian currency was at 54.82/83, its lowest level since March 7, versus 54.43/44 close on Wednesday.
A senior dealer said the currency will get some support at the 54.85 area, if that is breached, the rupee will fall to 55-55.15.
Otherwise, some correction will be likely back to 54.70-54.75 levels.
The pair broke 200 DMA resistance which was at 54.51.
Local stocks were down 1.4 per cent.
The dollar index rose to an eight-month high on Thursday, pushed higher by gains against the yen and the euro after aggressive monetary easing steps from the Bank of Japan and weak euro zone business activity data.
