Rupee weakens 15 paise to open at 73.43 against the US dollar

Adding to the concerns was oil prices, which rose 1 percent on Thursday, following the US stock market higher a day after Wall Street's biggest drop since 2011.

Brent crude futures rose 72 cents to settle at $76.89 per barrel as US equities rose amid strong corporate earnings. The global benchmark has lost almost $10 a barrel since hitting a high of $86.74 on Oct. 3.

Unabated capital outflows by foreign funds continued to dampen the sentiment, according to market experts.

Foreign portfolio investors (FPIs) pulled out around Rs 1,495.71 crore on a net basis from capital markets Thursday with stocks declining 1 percent in line with global sell-off. FPIs had pulled out Rs 2,046.54 crore on net basis Wednesday.

The rupee is the worst performing emerging market currency having lost almost 15 percent since January this year. Between April and September, the rupee has plummeted more than 7 percent to the dollar.

In debt markets, the yields on the 10-year government bonds fell 0.06 percent to 7.87 percent after closing at 7.87 percent on Thursday. Bond yields and prices move in opposite directions.