The rupee had touched a record intra-day low of 54.32 on December 15, 2011.
Forex dealers said apart from the dollar's gains against the euro and other currencies overseas on renewed euro-zone worries, a weak opening in the equity market and increased demand for the American currency from importers mainly put pressure on the rupee.
Meanwhile, the BSE benchmark Sensex was down by 252.07 points, or 1.54 per cent, at 16,076.18 in early trade.