Riding on global currency volatility wave, the rupee on Friday plummeted sharply by 29 paise to close at a fresh 2-year low of 65.83 against the USD on high demand for greenback from banks and importers. Heightened fears of a China-driven global economic crisis as well as worries of imminent Fed rate hike predominantly kept intense pressureon the domestic currency. Besides, escalating tensions between SKorea and NKorea and weakness in emerging market currencies weighed on sentiments. A combination of domestic factors like growth constraints in the midst of lack of revival in investment climate as well as weak earnings made a strong case for erosion in the rupee value, forex dealers said. Heavy offloading in portfolios by foreign investors and global traders also led to the sudden rupee weakness, they added. While, $ continued to trade weak against a basket of other major currencies and slipped to a fresh 6-week low, following emergence of confusing signals from the US Federal Reserve meet.