The rupee fell to as low as 65.50 to the dollar on Thursday, its lowest since September 2013, tracking losses in Asian currencies after a slump in Chinese equities reinforced concerns about the world's second-largest economy.
The rupee was at 65.4750/4800 at 03.33 pm (1003 GMT), compared with its close of 65.2650/2750.
The Shanghai Composite Index lost 3.4 percent, in a new stumble that underscored fragile investor confidence in the market and pushed emerging Asian currencies lower.
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