Indian rupee depreciated against the U.S. dollar on Thursday amid foreign fund outflows. Foreign institutional investors offloaded equities worth Rs 1,666.46 crore on Wednesday, according to exchange data. Traders overlooked the government data has showed that Foreign Direct Investments (FDI) equity inflow in India increased by 15% to $18.62 billion during April-June period of this fiscal year (FY26), as compared to $16.17 billion in the same period of last fiscal. On the global front, British pound strengthened against other major currencies in the European session on Thursday amid risk-on mood by the investors, as a bond market sell-off stabilized and dovish Fed comments coupled with weak U.S. data reinforced rate-cut bets.

Finally, the rupee ended at 88.12 (Provisional), depreciated by 10 paise from its previous close of 88.02 on Wednesday. The currency touched a high and low of 88.19 and 87.85 respectively.