Mumbai: Rupee plummeted by 23 paise to 66.85 against the US dollar in early trade on Wednesday on the government's surprise move to ban Rs 500 and Rs 1,000 currency notes in a bid to curb black money.
Besides, an early trend suggesting Republican Donald Trump's lead in US presidential election also influenced the trading sentiment.
However, a fresh demand for the American currency from importer weighed on the domestic currency, but dollar's tumbling against other rivals overseas on strong Trump showing in US election minimised the fall, traders said.
Yesterday, the rupee had ended higher by 12 paise to close at one-month high of 66.62 following heavy dollar unwinding by banks and exporters amid capital inflows.
Meanwhile, the benchmark BSE Sensex crashed below the 26,000-mark by plunging 1,688.69 points, or 6.12 per cent, to 25,902.45 in opening trade.