The rupee fell to its lowest in more than eight months on Friday morning tracking weakness in other regional currencies, while concerns over flagging domestic growth also weighed on sentiment.
Foreign portfolio outflows from the equity markets are also hurting the rupee.
By 0352 GMT, the partially convertible rupee was trading at 72.04/05 per dollar, its weakest level since Dec. 14.
Almost all Asian currencies were trading weaker against the dollar.