The rupee pared initial gains and settled 21 paise lower at 81.59 (provisional) against the US dollar on Monday, tracking a rebound in the greenback overseas and a muted trend in domestic equities.
Foreign capital withdrawals and persistent risk aversion in global markets, according to forex dealers, have dampened investor mood.
The rupee began the day at the interbank foreign currency market with gains against the dollar at 81.29, but it quickly gave up those gains and dropped to an intraday low of 81.73.
The local currency ultimately dropped 21 paise from its previous close to conclude at 81.59.
On Friday, it depreciated by 8 paise to close at 81.38 against the dollar.
The dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.12 per cent higher at 102.32.
Global oil benchmark Brent crude futures fell 0.49 per cent to USD 84.86 per barrel.
The 30-share BSE Sensex ended 168.21 points or 0.28 per cent lower at 60,092.97, while the broader NSE Nifty fell 61.75 points or 0.34 per cent to 17,894.85.
Foreign institutional investors (FIIs) were net sellers in the capital market on Friday as they offloaded shares worth Rs 2,422.39 crore, according to exchange data.
With inputs from Agencies.