In line with equities, the rupee plummeted further by 28 paise to 66.90 against the US dollar in late morning deals on government's move to withdraw higher-denomination currency notes compounded with US election trend.
The domestic currency opened lower at 66.70 as against yesterday's closing level of 66.62 per dollar at the Interbank Foreign Exchange (Forex) market.
Later, it spiralled downward and languished between 66.90 and 66.70 during morning deals, it was still quoting 66.90 at 1045 hrs.
Meanwhile, the dollar Index was dropped by 2.06 per cent at 95.91 against a basket of six currencies in the early trade.
In overseas market, the US dollar sank more than three per cent versus yen and turned tail against other major peers in early Asian trade amid extremely volatile trade in global market.
An early trend suggesting Republican Donald Trump's lead in US presidential election also influenced the trading sentiment.
Meanwhile, the benchmark BSE Sensex was trading sharply down by 932.03 points, or 3.38 per cent, to 26,659.11, at 1050 hrs.
The forex market will be closed on Monday for Eid A
Milad.
In the forward market, premium for dollar fell back due to fresh receivings from exporter
The benchmark six-month premium for May declined to 132-134 paise from 139-141 paise and the far-forward November 2017 contract also drifted to 277-279 paise from 288-290 paise yesterday.
On the equity front, bourses continued to maintain a firm trend led by frontline banking stocks as sentiment turned buoyant following additional stimulus measures from the ECB largely offseting nearterm disappointment about the Reserve Bank of India's decision to hold rates.
The flagship Sensex edged higher 52.90 points to end at 26,747.18, while Nifty gained 14.90 points at 8,261.75.
Meanwhile, crude prices extended gains on the back of growing optimism that non-OPEC producers might agree to cut output following a cartel agreement to limit production.
