The stock market closed at its lowest level since the global financial crisis last year on Friday as investors fled the market.
The Sensex ended down as much as 4.5 per cent on Friday.
The rupee has fallen sharply against the dollar and the euro, which is currently trading at around 0.6 per cent.
The decline in the Sensex also affected other markets.
The dollar strengthened against the euro on Friday, rising to about 0.5% against the greenback.
The benchmark 10-year note in the Indian rupee, which traded at 68.16 against the Australian dollar on Friday after touching 66.70 on Thursday, slumped below 67.50 and ended at 69.95.
The pound fell 0.1 per cent against the U.S. dollar, while the euro strengthened 0.4 per cent to $1.2170.
Gold rose 0.3 per cent in London and the yen strengthened 0% to 106.16 yen per ounce.
The market was closed at 5.30 p.m. ET.