Indian rupee depreciated against the US dollar on Monday amid Indo-U.S. trade deal uncertainties and higher dollar demand from importers. Traders overlooked a report that Indian manufacturing sector witnessed the fastest improvement in operating conditions in over 17 years in August, driven by an increased production efficiency and healthy demand conditions. The seasonally adjusted HSBC India Manufacturing Purchasing Managers' Index (PMI) rose from 59.1 in July to 59.3 in August. Besides, India's GDP grew by a stronger-than-expected 7.8 per cent in April-June, its fastest pace in five quarters, before US President Donald Trump imposed tariffs that now cloud the outlook, threatening key exports like textiles. On the global front, U.S. dollar weakened against other major currencies in the late Asian session on Monday, due to growing speculation that the U.S. Federal Reserve (Fed) may lower interest rates at its September meeting.

Finally, the rupee ended at 88.18 (Provisional), depreciated by 9 paise from its previous close of 88.09 on Friday. The currency touched a high and low of 88.33 and 88.13 respectively.