As per the report, the rupee opened at 68.87 a dollar at the interbank foreign exchange market, against 68.61 previously and sank to 69.10 in morning deals, falling 49 paise.
Global oil prices have climbed after the US asked its allies to end all imports of Iranian oil by November. Concerns over supply disruptions in Libya and Canada also pushed prices higher.
Higher crude oil prices and a declining rupee are a double whammy for India, forex dealers said.
Meanwhile, the benchmark Sensex was down by 90.26 points, or 0.25 percent, at 35,126.85 in early trade today.
(With inputs from PTI)