Mumbai, March 27 -- The rupee weakened by 5 paise to close at 85.74 against the US dollar on Thursday, as month-end dollar demand from importers, coupled with the greenback's recovery against major currencies, weighed on the rupee.

The US dollar strengthened after US President Donald Trump announced long-promised 25 percent tariffs on automotive imports, set to take effect on April 2.

Forex dealers said the rupee is also facing renewed pressure on liquidity constraints, concerns over reciprocal tariff implementations and month-end demand for the US currency from importers.

However, positive domestic markets and foreign fund inflows cushioned the downside.

At the interbank foreign exchange, the rupee opened at 85.90 and touched a high ...