The Indian rupee dropped on Monday morning weighed by a sharp fall in the local sharemarket which raised concerns about foreign capital outflows and also hurt by the dollar's gains against major currencies.
At 9:26 am the partially convertible rupee was at 45.72/73 per dollar, sharply below its Friday's close of 45.21/22.
Indian shares fell more than 2 percent early, with Reliance Industries and Infosys Technologies leading the decline, as world stocks dropped on worries over euro zone debt concerns.
The index of the dollar against six major currencies was up 0.9 per cent.
The euro extended its losses on Monday and hit a four-year low, hurt by persistent worries that harsh spending cuts mandated by a bailout plan may choke off a fragile recovery in the euro zone.