The Rupee slumpied as dealers stepped up dollar purchases on behalf of foreign investors, repatriating funds from local equities on fears of a global economic downturn.
The currency resumed low at 40.39/41, Later, the partially convertible rupee was at 40.15/16 per dollar, near the day's low of 40.18, its weakest since September 20. It ended at 39.91/92 on Tuesday.
India's benchmark share index fell on Wednesday, weighed by losses in other Asian markets and as record commodity prices raised inflationary concerns.
London's FTSE index opened lower and Japan's Nikkei average declined more than 3 per cent, as investors locked in profits amid concerns about the health of the global economy.
The Reserve Bank of India today fixed the reference rate for the US dollar at Rs 40.15 and the reference rate for Euro at Rs 59.06.
The reference rates are based on cross currency quotes at noon, a RBI release said.
The exchange rates of Great Britain's Pound and Japanese Yen against the Rupee were given as Rs 78.2644 per pound and Rs 37.23 per 100 yen respectively.
Meanwhile, the six months and one year premium of Dollar was quoted lower at 0.05 (0.17) per cent and 0.31 (0.67) per cent respectively.
The Indian unit ended lower at 58.99/59.01 (58.85/87) against the Euro. Rupee closed high at 78.09/11 (77.85/87) per unit against the Pound Sterling. But it ended low at 37.25/27 (37.18/20) per hundred units against the Japanese Yen.