After losing 24 paise in two days, the rupee commenced weak at 58.80 a dollar at the Interbank Foreign Exchange market from its previous close of 58.71.
It immediately touched a high of 58.79 but later declined to a low of 59.11 before concluding at 59.04, logging its lowest closing since May 15 when it had settled at 59.29.
Wednesday's fall of 33 paise, or 0.56 percent, is the biggest since 39-paise depreciation on March 20 this year.
"Domestic currency was markedly paring its gains against the American Unit on the back of genuine dollar demand by corporates to pay import bills. Expectations that the central bank would not allow the rupee to appreciate further also led to increased demand for the greenback," said Abhishek Goenka, Founder & CEO, India Forex Advisors.
Meanwhile, BSE Sensex on Wednesday tumbled 167.37 points while FIIs pulled out stocks worth nearly Rs 203 crore.
Pramit Brahmbhatt, Veracity Group CEO said, "Rupee continued to depreciate for the third consecutive day and weakened over half percent during the day to trade over 59.00 levels. Month end dollar demand from oil importers has forced rupee to trade weak. The trading range for the Spot USD/INR pair is expected to be within 58.50 to 59.50."
BJP heavyweight Rajnath Singh was today appointed the Home Minister and Sushma Swaraj the External Affairs Minister while Arun Jaitley was given Finance with defence as additional charge as Prime Minister Narendra Modi effected a major restructuring of the cabinet to ensure synergy and efficiency.


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