The rupee weakened to 68.80 in the afternoon trade due to month-end dollar demand from importers.
Forex dealers said a weak domestic equity market also weighed on the rupee but the dollar’s weakness against some currencies overseas capped the fall.
The rupee opened a tad up at 68.44 at the Interbank Foreign Exchange market today. It hovered in a range of 68.80 and 68.43 before quoting at 68.67, down 21 paise at 3.25 pm local time.
The rupee had rebound from a 39-month low by rising 27 paise to 68.46 on Friday, supported by aggressive selling of the American unit by exporters and banks.
Meanwhile, the benchmark BSE Sensex was trading up by 15.33 points or 0.06 per cent at 26,31.67.
The dollar and US bond yields fell on Monday as investors reversed a “Trumpflation” trade that has gripped markets since the US elections, after oil prices slid on fears that producer countries meeting this week could fail to agree an output cut.