Concerns about global growth were reinforced after data on Monday showed India's exports in October fell 5 percent from a year earlier, even as the trade deficit narrowed from September.
The dollar's recent strength has pushed the rupee down 0.6 per cent so far this month at a time when the benchmark 10-year bond yields have hit 15-month lows and domestic stock indexes have hit record highs.
Traders say the rupee could remain under pressure given that analysts expect the dollar to continue to gain, even as foreign investors have bought a net $2.54 billion in shares and debt so far this month. "The weakening trend should continue for some time. The pair may touch 61.90/95 before it stages a comeback," said Navin Raghuvanshi, a forex dealer at DCB Bank.
The partially convertible rupee closed at 61.73/74 per dollar versus its previous close of 61.72/73.
The rupee had hit its lowest level in nearly a month on Friday.
The falls on Monday came as global shares tumbled after data showed Japan had unexpectedly slipped into recession in the third quarter, setting the stage for Prime Minister Shinzo Abe to delay an unpopular sales tax hike and call a snap election.
Meanwhile, the BSE Sensex and Nifty rose to record highs on Monday as state-run lenders rallied after State Bank of India reported better-than-expected asset quality in the July-September quarter.
In the offshore non-deliverable forwards, the one-month contract was at 61.98/62.08, while the three-month was at 62.54/64.
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