The rupee edged down five paise to 79.61 against a basket of currencies on Friday as the dollar edged lower but not far from a two-year high. Rising global crude benchmark prices also weighed on the rupee ahead of a major meeting of major producers.

The US dollar index, which measures the greenback against the yen, pound, euro, Swiss franc, Canadian dollar and Swedish krona, was last down 0.2% at 109.5.

Crude oil prices were higher than the Organisation of the Petroleum Exporting Countries (OPEC) scheduled to meet on September 5.

Brent crude futures rose 1.7% to nearly $94 a barrel, and West Texas Intermediate (WTI) futures rose 1.8% to $88.2 a barrel.

According to IFA Global founder and CEO Abhishek Goenka, the rupee can be expected to trade in a range of 79.55-79.85 in the near term, with prices trading sideways.

On Thursday, the rupee closed at 79.56 against the dollar. Meanwhile, on Friday, Indian equity benchmarks BSE Sensex and NSE Nifty50 gave up initial gains in volatile trade.