The rupee declined 55 paise to 75.16 against the US dollar in opening trade on Thursday amid weak risk appetite after Russian President Vladimir Putin announced a military operation in Ukraine.
Forex traders said sustained foreign fund outflows, a lacklustre trend in domestic equities and elevated crude oil prices weighed on investor sentiment.
At the interbank foreign exchange, the rupee opened at 75.02 against the US dollar, then slipped further to 75.16, a decline of 55 paise from the last close. Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, rose 0.59 per cent to 96.75.
Global oil benchmark Brent crude futures jumped 4.67 per cent to $101.36 per barrel.
Russian military operation
Russian President Vladimir Putin on Thursday announced a military operation in Ukraine. In a televised address, Putin said the responsibility for bloodshed lies with the Ukrainian "regime". Putin warned other countries that any attempt to interfere with the Russian action would lead to "consequences they have never seen".
Meanwhile, US President Joe Biden has warned that the world will hold Russia accountable for the death and destruction due to the "unprovoked" and "unjustified" attack on Ukraine and the US and its allies will respond in a "united and decisive" way.
On the domestic equity market front, the 30-share Sensex tanked 1,587.52 points or 2.77 per cent to trade at 55,644.54 while the broader NSE Nifty crashed 468.25 points, or 2.74 per cent, to 16,595.00.
Foreign institutional investors remained net sellers in the capital market on Wednesday as they offloaded shares worth ₹3,417.16 crore, as per stock exchange data.