The Indian rupee slumped 36 paise and closed for the day at a fresh all-time low of 88.47 (provisional) against the US dollar, as ongoing tariff issue between India and the US weighed heavily on the domestic currency's vulnerability. Besides, a recovery in the US dollar ahead of the inflation data and foreign fund outflows further dented investors' sentiments. The dollar index is attempting recovery from a near seven-week low on Thursday morning in Asia with all eyes on August US consumer inflation data due for the day for further cues on Federal rate decision. Crude oil prices also gained over the past few sessions, putting further pressure on the rupee.

Meanwhile, Indian shares swung between gains and losses before ending slightly higher on Thursday amid optimism over GST reforms, hopes of Federal Reserve interest-rate cuts and comments from U.S. President Donald Trump that his administration is continuing negotiations to address trade barriers with India. The benchmark BSE Sensex ended the session up 123.58 points, or 0.15 percent, at 81,548.73, while the broader NSE Nifty index closed at 25,005.50, up 32.40 points, or 0.13 percent, from its previous close.

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