The decline came amid fresh dollar demand from importers and better-than-expected GDP growth in Germany and France.
The rupee opened lower at 61.54 a dollar from the previous close of 61.19 at the Interbank Foreign Exchange Market and touched a low of 61.56 on initial weakness in local stocks and dollar selling by exporters. It recovered to a high of 61.29 on a smart rebound in local equities, only to fall again to a new closing low of 61.44, a drop of 24 paise or 0.39%. The previous closing low was 61.30 on August 7.
The dollar index, which strengthened in early deals overseas, was almost stable as the euro rebounded following Germanys GDP data.