The rupee fell to 68 per dollar, its weakest level since Sept. 4, 2013, but pulled back as state-owned banks were spotted selling dollars likely on behalf of the Reserve Bank of India, three dealers told Reuters.
The rupee had hit a record low of 68.85 in August 2013, when the country was in the midst of its worst currency turmoil since the balance of payment crisis.
At 0552 GMT, the rupee was trading at 67.9725/9800, compared with Tuesday's close of 67.6450/67.6550.