Rupee settled lower against dollar on Thursday weighed down by a surge in crude oil prices and strong American currency overseas. Traders took note of report that India’s inflation based on wholesale price index (WPI) remained in the negative territory for the fifth straight month in August 2023 at (-) 0.52% as against (-) 1.36% recorded in July 2023. The negative rate of inflation in August is primarily due to fall in prices food products. Investors overlooked reports that Fitch Ratings retained India’s growth forecast for the current fiscal at 6.3 per cent saying the Indian economy continues to show resilience despite tighter monetary policy and weakness in exports, but upped year-end inflation projection on EI Nino threat. On the global front, sterling was a touch softer but held above this week's three-month lows against the dollar on Thursday, having recovered some ground after a selloff in the previous session following weak UK economic data.

Finally, the rupee ended at 83.03 (Provisional), weaker by 2 paisa from its previous close of 83.01 on Wednesday. The currency touched a high and low of 83.04 and 82.93 respectively.