The Indian rupee lost ground against the U.S. dollar in morning deals on Friday, as crude oil prices spiked on the back of Middle East geopolitical tensions.

The benchmark S&P/BSE Sensex dropped 183 points, or 0.44 percent, to 41,443, while the broader NSE Nifty index was down 56.55 points, or 0.46 percent, at 12,226.

The Indian rupee slipped to more than a 4-week low of 71.73 against the greenback from Thursday's closing value of 71.21. The rupee is seen locating downside target around the 74.00 area.

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