Indian rupee appreciated against the U.S. dollar on Thursday on the back of a sharp drop in the greenback and a strong show in the domestic equity markets amid rise in risk appetite. Investors got support as rating agency Icra in its Macro Update June 2025 has retained India's Gross Domestic Product (GDP) growth forecast for fiscal 2025-26 (FY2026) at 6.2 per cent, assuming well-distributed monsoons and crude oil prices averaging around $70/barrel. On the global front, Japanese yen strengthened against other major currencies in the European session on Thursday, as traders speculated that the Bank of Japan is likely to increase its interest rate in light of indications that inflation is broadening in Japan.

Finally, the rupee ended at 85.74 (Provisional), appreciated by 34 paise from its previous close of 86.08 on Wednesday. The currency touched a high and low of 85.93 and 85.63 respectively.