The rupee weakened to 63.93 against the US dollar on fresh demand for the greenback from banks and importers.
According to currency traders, a strong dollar also weighed on the rupee sentiment. The dollar gained against global currencies amid the United Nations’ move to impose fresh sanctions against North Korea.
The domestic unit opened weak by 9 paise at 63.87 at the Interbank Foreign Exchange market today. It hovered in a range of 63.93 and 63.83 before quoting at 63.93, down 15 paise at 4.40 pm local time.
The rupee had continued its rising run for the third day, surging by 27 paise to hit a fresh one-month high of 63.78 against the US currency on Friday.
The dollar edged higher on Monday after posting its biggest weekly drop in two months as a decline in risk aversion spurred some investors to cover their short positions before US inflation data later this week.
The dollar added 0.6 per cent against its perceived safe-haven Japanese counterpart to 108.45 yen, moving away from a 10-month nadir of 107.32 yen touched on Friday.
The dollar index, which tracks the US unit against a basket of six major currencies, was 0.2 per cent higher at 92.51, after skidding to a 2-1/2 year low of 91.011 on Friday.
The benchmark BSE Sensex closed higher by 195 points and the Nifty went past the 10,000-mark for the first time since August 7 as auto stocks gained after a less-than-expected GST cess and rising vehicle sales.