Rupee trading at 54.75/76, its weakest since September 14 and versus its previous close of 54.60/61, tracking losses in the euro and ahead of the U.S. presidential election results due this week.
The euro languishes near a two-month low versus the dollar on Tuesday, with its outlook clouded by uncertainty over a Greek parliamentary vote on austerity steps needed for Athens to secure international aid.
Traders say the market is also in a wait-and-see mode ahead of a tight U.S. presidential race, although President Barack Obama has a slight lead in the eight or nine battleground states.
The domestic share market performance during the day would also be watched for cues on the direction of fund flows.
The pair is seen in a 54.50-55.00 band during the session.