Extending losses, the Indian rupee fell by 0.5 percent to its lowest levels seen in 2019. It weakened to Rs 71.94 against the US dollar at 3:10 pm. The domestic currency opened almost unchanged at 71.56/ dollar as against its previous close of 71.55.

Nonetheless amid continuing surge in global crude oil prices and gains in the dollar, rupee retreated lower after a flat opening. At 9:10 am, the rupee traded at 71.66, down 11 paise from its previous close.

On Wednesday, the rupee on the back of strengthening in emerging market currencies recovered some lost ground and settled higher by 16 paise at 71.55 against the greenback.

Investors await the government's intervention to revive the ailing economy and come up with sector specific stimulus measures.

In the bond market, yield on 10-year government bonds was up 0.26% to 6.58% versus its previous close of 6.57%.

Meanwhile, benchmarks of the Indian equity markets, Sensex ans Nifty 50 extended their decline for the third consecutive day, dragged by Yes Bank and Indiabulls Housing. The fall comes despite the easing of norms on entry of foreign investors by SEBI, which was expected to be positive for the markets.