Indian rupee weakened against the U.S. dollar on Thursday amid surge in global energy prices with Brent crude trading above $100 a barrel mark. The escalating tensions in West Asia have sparked caution among investors after Iran seized two cargo ships seeking to exit the Gulf via Strait of Hormuz and warned that the U.S. and Israel will not achieve their goals 'through bullying’. Besides, continuous foreign capital outflows weighed on rupee. The foreign institutional investors were the net sellers on Wednesday’s session, offloading securities worth Rs 2,078.36 crore. Meanwhile, industry body Assocham has said that the Indian economy, largely driven by consumption, has the potential to grow at over 7 per cent in 2026-27 even if crude oil costs $90-100 per barrel. It noted that the growth will be supported by strong consumption, steady exports, and increasing capital investment. On the global front, the euro has weakened against the dollar on Thursday, to trade below $1.17, amid tensions in West Asia and closure of Strait of Hormuz. 

Finally, the rupee ended at 94.07 (Provisional), weakened by 29 paise from its previous close of 93.78 on Wednesday. The currency touched a high and low of 94.17 and 93.98 respectively.