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U.S. dollar notes are seen in this November 7, 2016 picture illustration.Reuters file

The Indian rupee opened with a 52-paise fall on Friday to breach the 67-mark against the US dollar as multiple factors weighed in on the domestic currency. Dollar outflows on account of selling by foreign institutional investors (FIIs/FPIs), high demand by importers and possibility of interest rate by the US Fed caused the dollar to appreciate against the rupee that opened at 67.15.

The decline comes a day after the rupee fell 0.3 percent, its biggest since October 13, Geojit BNP Paribas said in a note on Friday.

The US dollar rose to a four-month high against select currencies as hopes of the US Federal Reserve raising interest rates strengthened over expectations of higher spending by US president-elect Donald Trump.

"USD rose vs 9 of its G-10 peers amid growing perception that a Trump presidency could give a boost to U.S. economic growth via inflation-boosting fiscal measures," Geojit BNP Paribas said.

FIIs were net sellers of Indian equities worth Rs 733 crore on Thursday, according to provisional data available with the National Stock Exchange (NSE).

Sentiments were also affected due to a weak opening on Indian stock markets, with the BSE Sensex falling more than 400 points in intraday trade. 

At around 11.18 am, the index was down 412 points to 27,104 while the NSE Nifty was trading 145 points at 8,380. Sun Pharma was the sole Sensex gainer, up 4.93 percent at Rs 699.80.

On Thursday, the yield on 10-year government bond due September 2026 dropped marginally to 6.66 percent.

In other news, Prime Minister is doing a sales pitch in Tokyo, Japan during his official visit to the country. 

In 2015-16, India-Japan trade was $14.5 billion, down 6.47 percent from $15.5 billion in the preceding fiscal. 

Later in the day, the government is expected to publish factory output (IIP) figures, while the Reserve Bank of India (RBI) will be releasing the weekly foreign exchange data statistics in the evening.