Marking its biggest single day fall in three weeks, the rupee ended at 60.01 against the dollar as investors turned cautious ahead of the Union Budget to be announced on July 10.
The rupee had ended flat, at 59.74 on Friday. The domestic currency opened a tad weaker at 59.81 on mild inflows into the equity market. Thereafter, the rupee declined to 60.04 on mild dollar buying and thin trading volumes.
The Sensex ended at a record high of 26,100 points, up 138 points (0.54 per cent), for the second straight trading session.
The inter-bank call money rates, the rate at which banks borrow short-term funds from each other to tide over liquidity mismatches, ended higher at 8.75 per cent from Friday’s close of 8 per cent.
The benchmark 8.83 per cent Government security which matures in 2023, also closed lower at Rs 100.83 from the previous close of Rs 101.04, while the yield hardened slightly to 8.69 per cent from 8.66 per cent.
Bond prices and yields move in the opposite direction.