The rupee staged a late rebound after plunging 110 paise in early trade Tuesday but still ended 53 paise lower at 71.85 against the US dollar following RBI Governor Urjit Patel's shock exit coupled with the loss of the ruling BJP in key state elections. On Monday, the Indian rupee tumbled 50 paise to close at 71.32 against the US dollar.

The Indian rupee tumbled 50 paise to close at 71.32 against US dollar as nagging worries on global trade war front and uncertain crude prices hurt forex market sentiment.Besides, the trading pattern in the forex market was impacted by massive sell-offs in domestic equities as investors panicked over exit polls suggesting the Congress giving a tough fight to the ruling BJP in state elections.

The government will put in place a-proper-mechanism including easy regulations, detailed information and less paperwork for global funds to invest in the country in areas such as infrastructure and startups, Commerce and Industry Minister Suresh Prabhu said. Prabhu said these global funds face certain challenges like finding the right candidates in country for investments, among others, "so we are discussing a structure (for them)".