Indian rupee appreciated against the U.S. dollar on Thursday following a weak greenback against major crosses overseas and a decline in US treasury yields. Traders took support as India’s services sector gathered more pace in June to touch a ten-month high, as output and new order intakes rose at the fastest rates since August 2024, aided by another robust expansion in international sales and job creation. According to the survey report, the seasonally adjusted HSBC India Services PMI Business Activity Index grew to 60.4 in June from 58.8 in May. The HSBC India Composite PMI Output Index - which measures both manufacturing and services - also surged to 61.0 in June as against 59.3 in May. On the global front, British pound strengthened against other major currencies in the European session on Thursday, after plans to reduce welfare expenditures were abandoned by the government.

Finally, the rupee ended at 85.34 (Provisional), appreciated by 28 paise from its previous close of 85.62 on Wednesday. The currency touched a high and low of 85.70 and 85.19 respectively.