The Indian rupee fell more than 3.5 percent to hit a fresh record low of 68.75 to the dollar on Wednesday.
The currency has been hit hard by a sell-off in emerging markets assets which has focused attention on India's wide current account deficit, sluggish economy and the slow pace of long-term structural reforms.
(Read more: Poll: Has the emerging market rout gone too far?)
Fears about U.S. military intervention in Syria have fueled risk aversion in global markets, dealing a further blow to emerging market assets with the latest selling in the rupee coming as Indian stocks opened sharply lower.
(Read more: Syria rattles global markets for second day)
The rupee is the world's worst major performing currency so far this year, slumping around 24 percent.