The rupee depreciated 44 paise on Wednesday to close at 75.77 (prelim) against the United States (US) currency as riskier assets took a hit amid rising geopolitical tensions.
Forex traders said continued foreign capital outflows, a lackluster trend in domestic stocks and elevated crude oil prices weighed on investor sentiment.
In the interbank foreign exchange market, the rupee opened at 75.78 against the US dollar but later fell to a low of 75.86.
The local unit finally closed at 75.77, down 44 paise from its previous close. On Monday, the rupee settled at 75.33 against the US dollar.
The forex market was shut down on Tuesday due to Mahashivratri.
The Dollar Index, which measures the dollar’s strength against a basket of six currencies, traded 0.20% higher to 97.60.
Global oil benchmark Brent crude futures rose 5.71% to $110.96 a barrel.
In the domestic stock market, the 30-piece Sensex ended 778.38 points, or 1.38%, lower at 55,468.90, while the broader NSE Nifty lost 187.95 points, or 1.12%, at 16,605.95.
Foreign institutional investors remained net sellers in the capital market on Monday, selling ₹3,948.47 crore of shares, according to stock market data.