The rupee slumped to a 9-week low as emerging market currencies fell against the US Dollar. The Indian rupee lost a staggering 73 paise, as short covering aggravated the fall and the currency closed at 62.66 to the dollar.
The South African Rand was another emerging market currency that was routed, falling to a 5-year low against the dollar.
Dealers say that sentiments for the rupee turned bearish after emerging market currencies suddenly fell. Weak sentiments across the globe, particularly weak equity markets also affected sentiments.
Worries that the Federal Reserve may further ease its QE3 programme also affected sentiments. Read more on QE3 here