Stock markets tracked rupee weakness and slipped over 1 per cent in early trades. The BSE Sensex fell over 200 points, while the 50-share Nifty benchmark traded 70 points lower at 5,215.
Today's fall in the rupee comes after the currency posted its biggest percentage fall in 18 years. The rupee has lost 17 per cent against the dollar so far this year - making it the worst performer by far among Asian emerging market currencies.
The rupee continues to slide despite frantic attempts by the government and central bank to support it and repeated comments by the finance minister that the rupee is oversold. (Read: Chidambaram says rupee has overshot true level)
But even as rupee holds centre stage, other factors -- mainly global - are likely to influence trade today. Among them are the growing concerns over a military intervention in Syria, which not only hit global markets on Tuesday, but also lifted oil and gold prices.
At times of uncertainty, investors often move out of perceived risky assets such as stocks and into supposedly safe havens such as gold.
Asian markets traded sharply lower, with Japan's Nikkei hitting falling 2.4 per cent to a two-month low. (Read: Asian shares hit 7-week low, oil at 6-month peak on Syria worries)