The Indian rupee drifted lower against the U.S. dollar in afternoon deals on Thursday, as regional shares fell on concerns over the coronavirus outbreak and investors awaited cues from the upcoming Budget.

The benchmark S&P BSE Sensex dropped 330 points, or 0.80 percent, to 40,869, while the broader NSE Nifty index was down 104 points, or 0.86 percent, at 12,025.

The rupee fell to 71.63 against the greenback, its lowest since January 8. The pair had ended Wednesday's trading at 71.29. The next possible support for the rupee is seen around the 74.00 level.

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