Indian rupee depreciated against the US dollar on Friday amid negative trend in domestic equities. Traders were worried after RBI Bulletin indicated downside risk to the overall demand in the Indian economy owed to persisting uncertainties related to the US trade policies. Investors overlooked the report that India’s industrial output growth, measured in terms of the Index of Industrial Production (IIP), accelerated to a 4-month high of 3.5 per cent in July 2025 due to good performance of manufacturing sector. IIP had expanded by 5 per cent in July 2024. On the global front, British pound weakened against other major currencies in the European session on Friday, weighed down to a large extent by the weakness in the financial sector, amid reports of likely imposition of windfall tax on banks.

Finally, the rupee ended at 88.19 (Provisional), depreciated by 60 paise from its previous close of 87.59 on Thursday. The currency touched a high and low of 88.33 and 87.71 respectively.