The rupee fell to a record low of 62.40 to the dollar in early morning trade here on Monday, despite the government announcing a series of remedial steps last week to stall the currency's fall.
The Sensex fell around 300 points, while the Nifty fell 1.7 percent after marking its lowest intraday level in 11 months, extending Friday's four percent slump as a record low of rupee weighs.
The rupee breached the previous low of 62.03 on Friday.
Meanwhile, foreign institutional investors sold 5.63 billion rupees of cash shares on Friday, ending a three-day buying streak, exchange data showed.
According to a foreign news agency report, Asian markets face a tense few days waiting to see if minutes of the Federal Reserve's last policy meeting will provide some clarity on when it might start scaling back stimulus-with far-reaching implications for borrowing costs across the globe.
