The partially convertible rupee was trading at 74.26/27 per dollar at 0345 GMT versus Tuesday's close of 74.41, which was a record low.

The benchmark 10-year bond yield was trading at 8.06 percent, down 2 basis points after earlier dropping to a low of 8.05 percent.

India is considering tapping its citizens abroad to prop up the rupee, Bloomberg reported late on Tuesday, which also helped rupee sentiment.

The central bank said it would buy 120 billion rupees worth of bonds via an open market operation on Oct. 11.