Indian rupee weakened against the U.S. dollar on Wednesday as uncertainties surrounding US-Iran peace talks waned expectations of easing West Asia conflict and reopening of Strait of Hormuz. After plans for a second round of negotiations between the US and Iran collapsed, the US President Donald Trump extended the truce with Iran. Further, capital outflows from foreign institutional investors (FIIs) weighed on rupee. The FIIs were the net sellers on Tuesday’s session, offloading securities worth Rs 1,918.99 crore. Besides, the investors took a cautious approach after research firm BMI, part of Fitch Solutions, said India's fiscal deficit is likely to breach the budgeted target for current fiscal and hit 4.5% of GDP as the government's policy response to the West Asia conflict could strain public finances. On the global front, the euro has strengthened against the dollar on Wednesday, to trade near $1.17, amid expectations that European Central Bank will keep the rates unchanged.

Finally, the rupee ended at 93.78 (Provisional), weakened by 34 paise from its previous close of 93.44 on Tuesday. The currency touched a high and low of 93.87 and 93.67 respectively.