The rupee plunged 65 paise to 73.99 against the US currency in opening trade on Friday amid continued forex outflows following weak global growth concerns.
Stocks plummeting 3 per cent in early session also hit the domestic currency.
Investor sentiment took a hit due to deep losses in global equities on coronavirus fears. RBI's decision to place Yes Bank under a moratorium and took over its board also weighed on market mood.
The rupee had closed with gains of 6 paise at 73.33 against the dollar on Thursday.
Continued forex outflows from capital markets with investors cutting down riskier bets hit the Indian currency, traders said.
Foreign portfolio investors (FPIs) sold equities worth Rs 2,476.75 crore on net basis on Thursday, market data showed.
The dollar index also dropped 0.25 per cent in spot markets after US President Donald Trump said coronavirus outbreak could hit the growth.
Oil prices were down 1.06 per cent; while gold, a safe haven bet, was headed for its best weekly gains in global markets.