The rupee sank to yet another intra-day low, hitting 72.92 to the dollar, The currency ended at 72.19, having closed at a record low of 72.70 on Tuesday.
Stocks also rebounded after a sharp selloff in the previous session as the Indian currency rose. The rupee has fallen about 4% against the dollar in 10 days and 11.5% this year, with about half of that since August 1, making it one of the worst-performing emerging market currencies.
The currency revival came amid reports that PM Narendra Modi is to hold a meeting this weekend to assess measures aimed at shoring up the rupee. The slump defies logic and the government and RBI will strive to curb the fall, economic affairs secretary Subhash Chandra Garg said.
The rupee closed sharply higher on Wednesday, cooling off from all-time lows registered in recent sessions. The rupee rose 51 paise against the greenback to settle at 72.19 for the day, marking its biggest single-day rise since May 25.