Indian currency notes
Indian currency notesReuters

The Indian rupee may depreciate to the levels around 72-73 against the US dollar once it falls below the all-time low of 68.85, hit on Aug. 28, 2013, according to a domestic brokerage firm.

"The rupee is coming near an inflection point. If you go past that (68.85), I am looking at now going to 72/73 on the currency," Rohit Srivastava, fund manager of domestic brokerage Sharekhan told NDTV Profit.

So far this year, the rupee has declined by 3.5 percent against the greenback, emerging as the worst performing currency in the Asian region.

"The pressure in the bond market is building up. The pressure on the currency is building up. That mix is essentially the same what we saw in 2013 when US bond yields were also shooting up between May and August of that year," he said.

The weakness in rupee is mainly due to continued heavy outflows from domestic equity markets. The benchmark stock indices have declined sharply since the beginning of 2016 amid a sell-off in global markets on growth worries over world economy.

"The benchmark Sensex stock index continues to struggle. The index is now below 24,000, which is 20% lower than its all-time high from January last year," Capital Economic detailed in a note.

The Reserve Bank of India (RBI) was reportedly intervening in the currency markets to arrest further fall in rupee. The falling rupee may deny the country the gain it may otherwise have on account of falling global crude oil prices, as a lower rupee would make imports costlier.