Indian rupee depreciated against the US dollar on Wednesday. The decline was primarily driven by a firm dollar and persistent outflow of foreign funds. Foreign institutional investors (FIIs) offloaded equities worth Rs 3,548.92 crore on a net basis on Tuesday, according to exchange data. Traders overlooked the report that Cabinet has approved the free trade agreement (FTA) between India and the UK, which will be signed in London on July 24, 2025. The pact, officially called as comprehensive economic and trade agreement, will be signed during Prime Minister Narendra Modi's visit to London. On the global front, Japanese yen weakened against other major currencies in the Asian session on Wednesday, as additional uncertainty increased as a result of media reports that Japanese Prime Minister Shigeru Ishiba may step down as early as this month.

Finally, the rupee ended at 86.41 (Provisional), depreciated by 03 paise from its previous close of 86.38 on Tuesday. The currency touched a high and low of 86.46 and 86.34 respectively.