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Indian rupee weakened against the US dollar on Thursday, due to rising crude oil prices and foreign fund outflows from the capital market. Foreign institutional investors were net sellers in the capital markets on Wednesday and offloaded shares worth Rs 3,462.36 crore, exchange data showed.  Rupee fell further after the killing of a Hamas leader in Iran raised the threat of a wider Middle East conflict. However, some losses were limited by firm domestic equities after the US Federal Reserve chair Jerome Powell hinted an interest rate cut in September. The FOMC left its benchmark interest rates unchanged at 5.25% - 5.50% for the eighth straight meeting on Wednesday, in line with the market expectations.

The partially convertible currency is currently trading at 83.71, weaker by 3 paise from its previous close of 83.68 on Wednesday. The currency touched a high and low of 83.7125 and 83.6550 respectively.