Extending its losses for the fourth day, the rupee on Wednesday tumbled by 31 paise to close at fresh nine-month low of 68.56 against the dollar due to persistent capital outflows amid a resurgent US currency in global markets.
The forex market sentiment turned highly fragile due to consistent unwinding by foreign investors against the backdrop of demonetisation as well as renewed Fed rate hike fears.
Robust month-end dollar demand from oil companies along with aggressive hedging strategy adopted by importers in the wake of currency volatility also weighed on the rupee trade, a forex dealer said.