Indian rupee pared initial gains and settled for the day lower against US dollar on Thursday, on a strong American currency and a recovery in crude oil prices. Traders remained cautious as the Ministry of Commerce & Industry in its latest data showed that the output of eight key infrastructure sectors fell to a two-month low of 2 per cent in July 2025 due to a dip in the production of coal, crude oil, natural gas, and refinery products. Some concern also came as exchange data showed Foreign Institutional Investors offloaded equities worth Rs 1,100.09 crore on Wednesday. Traders overlooked India’s flash Purchasing Managers’ Index (PMI) data showing that India’s private sector economy recorded its fastest growth since the start of survey data in December 2005, with the headline HSBC Flash India Composite PMI Output Index rising over four points to 65.2 from 61.1 in July. On the global front, U.S. dollar inched up against its rivals on Thursday as investors awaited insights into the Federal Reserve’s rate cut path at the three-day annual symposium in Jackson Hole.  

Finally, the rupee ended at 87.25 (Provisional), depreciated by 18 paise from its previous close of 87.07 on Wednesday. The currency touched a high and low of 87.27 and 86.93 respectively.