The Indian rupee fell 21 paise to trade at 94.97 against the US dollar in early morning trade on Monday.
A stronger greenback in overseas markets dragged the local currency lower.
The domestic currency opened at 94.90 at the interbank foreign exchange market before dipping further.
On Friday, the rupee had settled at 94.76 against the American dollar.
Gains in domestic equities and lower crude oil prices helped cushion the currency’s slide, according to currency traders.
Anindya Banerjee of Kotak NEO projected the currency pair to trade between 94.40 and 95.60.
Banerjee noted that Reserve Bank interventions and substantial foreign exchange reserves of around 720 billion dollars continue to stabilize the market.
He added that cheaper crude oil supports the rupee, while rising oil prices could push the currency higher.
The dollar index rose 0.07 percent to 101.94 against a basket of six major global currencies.
Brent crude futures fell 3.07 percent to trade at 109.95 dollars per barrel.
Central bank data showed India’s foreign exchange reserves fell by 1.269 billion dollars to 719.748 billion dollars during the week ending October 30.
Foreign institutional investors bought shares worth 3,598.54 crore rupees on Friday, according to exchange figures.
Indian stock indices showed strong early performance despite the currency decline.
The BSE Sensex surged 764.72 points to reach 75,216.80 in early trade.
The NSE Nifty gained 201.40 points to trade at 23,255.90.
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