The rupee declined 25 paise to close at 82.53 (provisional) against the US dollar on Monday, pressured by a lacklustre trend in the domestic equity markets and foreign capital outflows ahead of macroeconomic data announcements.
Forex traders said risk-off sentiment in global markets also weighed on the local unit.
At the interbank foreign exchange market, the rupee opened lower at 82.54 against the greenback and witnessed a high of 82.50 and a low of 82.74.
It finally settled at 82.53, down 25 paise over its previous close of 82.28.
The dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.02 per cent lower at 104.79.
Global oil benchmark Brent crude futures fell 1.02 per cent to USD 75.32 per barrel.
The 30-share BSE Sensex ended 51.10 points or 0.08 per cent lower at 62,130.57, while the broader NSE Nifty closed almost flat at 18,497.15.
Industrial production data and retail inflation numbers are scheduled to be announced later on Monday.
Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Friday as they offloaded shares worth ₹158.01 crore, according to exchange data.
After investing over ₹36,200 crore last month, foreign investors continued their positive momentum and infused ₹4,500 crore in the Indian equity markets so far in December, mainly due to the decline in the dollar index.
However, foreign portfolio investors (FPIs) turned sellers in the last four trading sessions and pulled out ₹3,300 crore as they are adopting a cautious stance ahead of the US Federal Reserve's decision on the interest rate.
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.