Indian rupee depreciated against the US dollar on Tuesday tracking foreign fund outflows and global trade tensions. Foreign institutional investors net sold shares worth Rs 2,170.35 crore on September 08. Investors ignored the report that India and Israel have signed a Bilateral Investment Agreement (Agreement). The agreement is expected to boost investments, provide greater certainty and protection for investors, facilitating the growth of trade and mutual investments by ensuring a minimum standard of treatment, and an independent dispute resolution mechanism through arbitration. On the global front, U.S. dollar weakened against other major currencies in the late Asian session on Tuesday, ahead of key U.S. inflation readings due later in the week that could influence the US Fed's rate trajectory.

Finally, the rupee ended at 88.17 (Provisional), depreciated by 08 paise from its previous close of 88.09 on Friday. The currency touched a high and low of 88.19 and 87.95 respectively.