The rupee fell 0.20 per cent on Wednesday to settle at a new low of 84.28 per dollar, marking the largest single-day decline since June 20 this year.
However, it was the best-performing Asian currency after the Hong Kong dollar. The rupee had closed at 84.11 on Tuesday.
The Thai baht and Japanese yen depreciated the most against the greenback with 1.92 per cent and 1.66 per cent depreciation, respectively.
The local currency fell as Republican candidate Donald Trump was elected as the 47th President of the United States (US), defying expectations and securing a greater number of nationwide votes than Kamala Harris.
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