The rupee depreciated by 25 paise to settle at more than one-week low of 73.60 against the US dollar on Tuesday amid growth concerns and fresh border tensions between India and China.
A rise in demand for the US currency from banks and importers and forex outflows weighed on the local currency, according to forex dealers.
According to provisional exchange data, foreign investors withdrew Rs 1,056.52 crore from the capital markets on Tuesday.