The rupee slumped by a record 105 paise to end Wednesday's session (April 7) at 74.47 owing to reporting of over 1 lakh cases for the third-straight day.
Also, amid uncertainty posed by the second pandemic wave and threat to economic recovery from the fall-out, RBI continued with its accommodative stance while keeping key repo rate unchanged.
The domestic unit opened at 73.52 and during the day traded in a range of 73.52 to 74.5.
"The Indian Rupee depreciated amid concern over rising COVID-19 cases in India and lockdown restriction in some states. Furthermore, Reserve bank of India kept its repo rate unchanged for the 5th consecutive policy meeting and maintained accommodative stance," said Saif Mukadam, Research Analyst, Sharekhan by BNP Paribas.
There prevailed cautious in the market ahead of the release of the FOMC meet minutes that will provide cues on monetary policy take in the US.
There was also registered a fall in the greenback against a basket of other currencies which tumbled to 92.28.