By Abhishek Vishnoi
The rupee extends loss to trade at 61.31/32 versus Monday's close of 61.0950/1050.
The Indian unit had earlier hit 60.90, its lowest level since Sept. 23.
Worries about global economic growth spark a recovery in the dollar from recent falls.
Demand for dollar is also helped by pent-up demand after U.S. markets were closed on Monday.
Demand for dollars from defence companies also driving the pair lower.
Traders also cite caution ahead of elections in Maharashtra on Wednesday.