The rupee, which saw a steep fall of 35 paise overnight, continued the southward journey following the high crude oil prices.
Dealers said Rupee dropped to its lowest since late September 2007 as refiners scrambled to cover their import payment needs after crude hit a record high near USD 121 per barrel.
The Rupee crossed the 41 mark against the USD this morning when it opened low at 41.05/06 per USD. However, it hit the day's high of 41.39 and low of 41.04.
Reserve Bank of India today fixed the reference rate for US Dollar at Rs 41.20, up 51 paise from yesterday's rate of Rs 40.69 per USD.
The six-month premium was quoted at 1.80/82 (1.65/67) per cent and annualised premium closed at 1,53/55 (1.45/47) per cent.
The local currency ended the day at 63.67/69 (63.62/64) against the Euro, 80.69/71 (80.73/75)per unit against the Pound Sterling and 30.20/22 (39.18/20) per hundred units against the Japanese Yen, dealers said.