The rupee tentatively ended at a record low of 78.32 against the dollar on Thursday, after closing at that level in the previous session.
This corresponds to a broader fall in global risk assets amid recession fears.
While Indian stocks have recovered, but overall performance points to more pain ahead.
PTI reported that the rupiah opened at 78.26 and eventually stabilized at its all-time low of 78.32, unchanged from its previous close.
On Wednesday, the rupee plunged 19 paise to an all-time low of 78.32 against the US dollar.
The Indian rupee erased morning gains as safe-haven demand pushed the greenback ahead of quarter-end adjustments, HDFC Securities research analyst Dilip Parmar told PTI.
Parmar further said there was a strong chance of a near-rebound amid falling commodities, regional currency strength and a rally in risk assets.
“The USDINR spot should be in the narrow range of 78.10-78.50 before moving towards 79 odd levels,” he added.
The dollar appreciated against a basket of major currencies, with the index rising 8% for the year, reflecting general risk aversion sentiment and the dollar’s yield advantage driven by the Fed.