Indian rupee weakened against the U.S. dollar on Thursday amid persistent capital outflows by foreign institutional investors (FIIs) from Indian markets. The FIIs were the net sellers of securities worth Rs 4,703.15 crore on May 13, 2026. The rupee also weighed by the higher global energy prices with Brent crude oil prices trading above $105 a barrel. However, some recovery witnessed in later part of the day after reports indicated that the government is considering reduction in the taxes paid by foreign investors on the nation’s bonds, aimed at aligning policies with global norms and attract more foreign fund inflows. On the global front, the Japanese yen has weakened against the U.S. dollar on Thursday as the dollar gained traction on accelerating US inflation, which reinforced bets that Federal Reserve could maintain higher interest rates.
Finally, the rupee ended at 95.73 (Provisional), weakened by 7 paise from its previous close of 95.66 on Wednesday. The currency touched a high and low of 95.96 and 95.61 respectively.
