The Indian rupee nosedived to all-time record low of 71.12 against the United States dollar.
Despite opening 19 paise higher at 70.80 per dollar earlier , it witnessed a drop of 32 paise by the afternoon thereby crossing the 71 mark.
Amid volatility, the BSE Sensex also closed about 333 points down posting fourth straight session fall due to widespread selling and the rupee hitting yet another record low.
Weakening global cues, triggered by continuing trade war spats between the US and China, too impacted domestic market sentiment.
The BSE benchmark index Sensex hiked over 289 points to hit a high of 38,934.35 in early trade riding on the wave of first-quarter GDP data. The markets, however, touched a a low of 38,270.01 after data showed that manufacturing PMI has slowed in August.
The broader NSE Nifty closed below the 10,600 mark by plunging by 98.15 points, or 0.84 per cent, at 11,582.35 after shuttling between 11,567.40 and 11,751.80.