The rupee took a sharp plunge of 37 paise to 68.19 against the U.S. dollar due to higher dollar demand from importers and a weak domestic stock market.
Dealers said strengthening of dollar against rivals overseas following hints of interest rate hike in December from U.S. Federal Reserve chief Janet Yellen also weighed on the domestic currency.
Besides, foreign fund outflows kept pressure on the rupee, they added.
The domestic unit dropped by 23 paise to 68.05 in early trade against the previous close of 67.82 at the Interbank Foreign Exchange market today.
It hovered in a range of 68.19 and 68.03 before quoting at 68.15, down 33 paise at 4.20 pm local time.
Meanwhile, the benchmark BSE Sensex ended down 0.30 percent at 26,150.24.
