After a brief overnight calmer, the rupee once again turned shaky against the US dollar and closed at 66.82 - its lowest level in more than two-weeks - on the back of frantic demand for the American currency.
Sustained capital outflows against the backdrop of sliding equities and buoyant dollar overseas largely impacted trading sentiments.
Volatile currency market sentiment across Asia following a fresh round of China's yuan depreciation further added to gloom.
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Later, it drifted sharply to hit a fresh-intra day low of 66.84 on heavy dollar demand from banks and importers amid sharp fall in the domestic equity market, before concluding at 66.82, revealing a steep loss of 22 paise, or 0.33 per cent.
The local unit briefly touched a high of 66.66 during the early trade.
In worldwide trade, the dollar edged higher against the other major currencies, as heightened concerns over global geopolitical tensions continued to dampen demand for riskier assets after North Korea confirmed that it had conducted a nuclear test.
The dollar index, which tracks the world's reserve currency against a basket of its peers, is up marginally by 0.03 per cent at 99.48.
The stock market flagship index Sensex tumbled by over 174 points to end at 25,406.33, while the broader Nifty shed 43.65 points to close at 7,741.