The rupee on Thursday plunged by 26 paise and closed at an over eight-month low. The rupee opened weaker at 71.65 a dollar and touched an intraday low of 71.97 before closing at 71.81 against the American currency, news agency Press Trust of India (PTI) reported. The depreciation in rupee’s value came on the back of sharp declines in equity markets and foreign fund outflows. The sudden drop in Chinese yuan led to increased volatility in emerging market currencies, including the rupee, the report said quoting forex dealers. On Wednesday, the rupee had closed at 71.55 per dollar.