The rupee fell 2 paise to hit the lowest level of 83.15 against the US dollar in early trade on Thursday amid a strong American currency and elevated crude oil prices.
Forex traders said, massive selling of equities by foreign investors in the past few sessions and subdued market sentiment also put pressure on the Indian currency.
Crude oil breached the level of $90 per barrel after oil producing countries agreed to extend the supply cut till December this year, while dollar strengthened on safe-haven demand.
At the interbank foreign exchange, the domestic unit opened at 83.15 against the dollar, 2 paise lower from its previous close. The unit traded in a narrow range of 83.14 to 83.16 against the greenback.
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, fell marginally by 0.01 per cent to 104.85.
Brent crude futures, the global oil benchmark, was trading 0.21 per cent lower at $90.41 per barrel.
In the domestic equity market, the 30-share BSE Sensex was trading 156.01 points or 0.24 per cent lower at 65,724.51. The broader NSE Nifty declined 47.10 points or 0.24 per cent to 19,563.95.
Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Wednesday as they offloaded shares worth Rs 3,245.86 crore, according to exchange data.