The rupee gave up its early gains to close 7 paise lower at 85.55 against the US dollar on Friday, pressured by volatile domestic equity markets and a rebound in global crude oil prices. Caution prevailed among investors ahead of the upcoming GDP data release, forex traders said.The domestic currency opened at 85.35 and fluctuated between an intraday high of 85.25 and a low of 85.64 before settling at 85.55, marking a modest decline from the previous close. On Thursday, the rupee had ended 10 paise lower at 85.48, PTI reported.Anuj Choudhary, Research Analyst at Mirae Asset Sharekhan, said, “The rupee’s weakness today reflects a combination of increased demand for dollars from importers due to month-end transactions and rising crude oil prices. However, sustained foreign inflows and a softer US dollar index provided some support.”The US dollar index, which measures the greenback against a basket of six currencies, was up 0.28% at 99.49.Analysts noted that the dollar regained strength following a temporary stay imposed by a federal appeals court on a US federal court ruling that had challenged President Donald Trump’s sweeping reciprocal tariffs.Brent crude futures, the global oil benchmark, gained 0.41% to USD 64.41 per barrel.In the domestic stock market, the BSE Sensex declined 182.01 points, or 0.22%, to close at 81,451.01, while the Nifty dropped 82.90 points, or 0.33%, to 24,750.70.Foreign institutional investors (FIIs) were net sellers, offloading equities worth Rs 6,449.74 crore on Friday, according to exchange data.The Reserve Bank of India’s latest annual report highlighted the country’s robust growth outlook, stating that India is set to remain the fastest-growing major economy in the world in the fiscal year 2025-26.