The dollar index was up by a whopping 0.45 per cent against basket of six major global rivals, which also pushed the rupee to log its biggest daily loss since September 15.
A widening trade deficit that hit a 18-month high in September was also among the factors that led to rupee depreciation.
At the Interbank Foreign Exchange market, the local unit commenced lower at 61.56 and attempted a recovery to touch a high of 61.43.
However, it fell back to a low of 61.93 and closed at 61.83, logging a loss of 42 paise or 0.68
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