On Thursday, the Indian rupee weakened against the US dollar due to rising crude oil prices and outflows of foreign funds from the capital market. Data from the exchange showed that foreign institutional investors were net sellers on Wednesday, unloading shares worth Rs 3,462.36 crore. The rupee's decline was further impacted by the assassination of a Hamas leader in Iran, which heightened concerns over a broader Middle East conflict. However, firm domestic equities helped limit some of the losses after US Federal Reserve Chair Jerome Powell hinted at a potential interest rate cut in September. The Federal Open Market Committee (FOMC) kept its benchmark interest rates steady at 5.25% - 5.50% for the eighth consecutive meeting on Wednesday, in line with market expectations.

The partially convertible currency is currently trading at 83.71, down by 3 paise from its previous close of 83.68 on Wednesday. The rupee's high and low for the day were 83.7125 and 83.6550, respectively.