The rupee recovered marginally from its lifetime low to trade at 68.95 per dollar in late morning deals today amid heavy month-end demand for the American currency from importers and banks.
The domestic unit plunged to a record low at 69.10 before gaining ground to 68.95 at 1030 hrs, still down by 34 paise.
The Indian unit resumed sharply lower at 68.89 from yesterday’s closing level of 68.61 at the inter-bank foreign exchange.
Rising crude oil prices have deepened concerns about the country’s current account deficit and inflation.
Crude oil prices rose in Asia as the US pressured allies to stopped buying Iranian crude amid concerns over supply disruptions in Libya and Canada.
Brent crude futures surged to $77.50 a barrel, the highest since 2014, on tight supply.
Meanwhile, the US dollar was steady against its peers in early Asian trade, having failed to extend overnight gains amid conflicting signals from Washington on a proposal to restrict Chinese investment.
The 30-share BSE Sensex was trading up by 13.92 points or 0.04 per cent at 35,231.03 at 1105 hrs.