The local currency settled 9 paise down at 70.78 against the dollar on Friday.
Yuan has weakened nearly 2.4 per cent since Donald Trump threatened more tariffs on China.
The yen traded at 105.400 per dollar after brushing 105.050 overnight.
On a weekly basis the local unit lost 118 paise.
China’s fixing is published every trading day at 9:15 a.m., after a group of 14 lenders submit their rates.
The rupee had settled at 70.89 against the US dollar on Wednesday.
Large volumes in the offshore market reflect the fact that the interest in rupee is far larger than what is evident in onshore currency markets"
The local currency opened the day at 70.84 per dollar against the previous close of 70.89.
This is the fifth straight session of loss for the domestic currency, during which it has lost a hefty 210 paise.
The rupee is forecast to gain nearly 2% to trade at 69.60 per dollar in a year.
Following the RBI's Monetary Policy Committee (MPC) decision, the local currency witnessed heavy volatility.
On the domestic front, market participants will be keeping an eye on RBI policy meeting.
The onshore yuan opened trade at 7.0369 per dollar versus its last close at 7.0250.
“Today, USDINR pair is expected quote in the range of 70.70 and 71.50,” Motilal oswal Financial Services said in a report.
The Chinese authorities have been seeking to introduce greater currency flexibility.
China fired back with the bank saying it is "resolutely opposed" to the US designation.
The yen erased gains versus the dollar and fell against most major currencies.
China let its yuan weaken below 7 to the dollar on Monday, an 11-year low.
It was the worst intraday fall for rupee since March 6.
The level was last breached during the global financial crisis in 2008.
The benchmark Shanghai Composite Index fell 0.44 per cent.
Persistent foreign fund outflows and a strengthening greenback also put pressure on the domestic currency.
The local currency declined 27 paise to close 69.06 against the US dollar on Thursday.
Dollar was 1.32% weaker at 107.31 yen after hitting a two-month high overnight.
The dollar index rose 0.35 per cent to 98.85.
Euro and pound were also weighed down after the Fed announcement.
The dollar index against a basket of six major currencies was last quoted at 98.516, close to a two-year high of 98.683 reached on Wednesday.
The dollar index, which measures the currency against a basket of six rivals, also rose to its highest since May 2017 at 98.683.
Traders said market participants were trading a cautious path as the US-China trade talks ended without a breakthrough.
The local currency on Tuesday settled 10 paise down at 68.85 against the dollar.
Forex traders said strengthening of the greenback against Asian currencies weighed on the domestic unit.
Against a basket of six major currencies, the dollar traded near a two-month high.
At the interbank foreign exchange (forex), the domestic currency witnessed a heavy volatility.
The rupee had settled at 69.04 against the US dollar on Thursday.
Dollar traded at 108.675 yen, near a two-week high; 0.9% gain on the week, biggest since March 1.
Offshore yuan was trading level with its onshore spot counterpart at 6.8787 per dollar.
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