The rupee fell 8 paise to trade at 69.03 against the US dollar in early trade on Friday on appreciation of the American currency overseas and sustained foreign capital outflows.
This is the rupee's third straight slide, which dealers say is mostly due to demand for the US currency and a lower opening in the domestic equity market.
With the US set to impose tariffs on Chinese goods on Friday, investors feared it could trigger a full-scale global trade war.
On Thursday, the rupee had tumbled 21 paise to fresh closing low of 68.95, following a panic demand for the US dollar coupled with savage capital flight worries.
Foreign portfolio investors (FPIs) sold shares worth Rs 1.59 billion (Rs 159.37 crore) on Thursday, according to provisional data.
Meanwhile, the benchmark Sensex was down by 42.34 points, or 0.11 per cent, to 35,532.21 in early trade.