The rupee fell, the most this month, to close at 55.98 against the dollar mainly on global risk aversion.
The euro tumbled as concerns of Greece leaving the euro zone fold mounted.
The local unit opened lower at 55.70 against the dollar. On Friday, the local unit had closed lower at 55.33 on heavy dollar buying by nationalised banks and a weaker euro.
“Gobal factors are playing a more important role in rupee’s fall than local factors,” Mr. Abhishek Goenka, Director, India Forex said.
Spain’s economy contracted by 0.4 per cent in April to June quarter, according to the latest figures released by Bank of Spain. It had slumped by 0.3 per cent in the January-March quarter.
With the Presidential polls out of the way, marketmen are expecting some reform initiatives by the government.
The month-end demand for dollar from oil importers is also likely to put strain on the rupee throughout the week.
“It may weaken more. We see the rupee at 57-level in a couple of week’s time,” Mr. Goenka said.
Call rates and G-Secs
The interbank call rates closed at 8 percent. It had closed at 7.95 per cent on Friday.
The widely traded, 9.15 per cent government security, maturing in 2024, closed at Rs 106.74 (yield: 8.26 per cent) against previous close of Rs 106.55 (yield: 8.28 per cent).
The 8.15 per cent government security, which matures in 2022, closed at Rs 100.55 (yield: 8.06 per cent) against previous close of Rs 100.49 (yield: 8.07 per cent).