Reuters Market Eye - The rupee falls to 61.77, a level last seen on March 5.
The rupee/dollar pair, which closed at 61.53/54 on Monday, now trades at 61.7575.
Traders say fall in the euro to below 1.26 levels on the back of disappointing euro zone inflation data hurt sentiment for the local unit.
The dollar index is up 0.55 percent to a fresh four-year high.
The RBI kept its key policy repo rate unchanged at 8 percent on Tuesday.
Month-end dollar demand from importers is also hurting the rupee.
The Nifty provisionally ends up 0.07 percent.
(Reporting by Gaurav Pai)
