The rupee slumped to its all-time low of 84.76 (provisional) against the US dollar after dropping 8 paise on Wednesday amid a strengthening greenback and increase in crude prices.
Forex traders said a positive trend in domestic equity markets and foreign fund inflows supported the local unit at lower level.
At the interbank currency exchange, the rupee opened at 84.66 and traded in the range of 84.65-84.76. Eventually it settled at 84.76 (provisional), 8 paise lower than Tuesday's close of 84.68.
Anuj Choudhary, Research Analyst at Mirae Asset Sharekhan, said, the rupee lost initial gains amid strong dollar and a positive tone in crude oil prices.
"Dollar strengthened amid upbeat JOLTS job openings data from the US and disappointing Caixin Services PMI data from China, he said, adding, "USD-INR spot price is expected to trade in the range of ₹84.50 to ₹85." Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading higher by 0.11 per cent at 106.47.
Brent crude, the global oil benchmark, surged 0.83 per cent to $74.23 per barrel in futures trade.
On the domestic equity markets, Sensex climbed 110.58 points to settle at 80,956.33, while Nifty was marginally up 10.30 points to 24,467.45.
Foreign Institutional Investors (FIIs) were net buyers in the capital markets on Tuesday, purchasing shares worth ₹3,664.67 crore, according to exchange data.