The rupee is down more than 8 per cent against the dollar so far this year Marking its single biggest fall against the US dollar in nearly two months, the rupee registered its lowest closing level at 69.05.
Continued strength in the dollar, after bullish comments from Federal Reserve Chairman Powell, dragged the rupee lower.
Lacklustre trade in the domestic equity markets amid renewed concerns on the US-China trade war battered investor sentiment, according to analysts.
The steepest single-day fall in the rupee since May 29 comes during a week official data showed weakness in the economy and a day before a no-confidence vote in Parliament.