The rupee pared its early gains and was trading weak by 7 paise at 67.66 in the evening session owing to capital outflows from the equity market and due to strengthening of dollar against other currencies overseas.
The dollar edged up 0.1 per cent to 117.24 yen, up from a session low of 116.56 yen touched in early Asian trade on Monday as well as Friday's 4-1/2 month low of 116.51 yen.
The rupee opened a tad strong at 67.60 due to fresh selling of the US currency by banks and exporters.
Later, it fell to 67.73 due to a weak trend in the domestic equity market before being quoted at 67.66 at 4.40 pm local time.
The local currency hovered in a range of 67.73 and 67.49 in the evening trade.
The rupee had dipped by 30 paise to close at a fresh 28-month low of 67.59 against the American currency on Friday due to demand for the greenback from importers in view of persistent foreign capital outflows amid a sharp fall in equities.
Meanwhile, the benchmark BSE index ended 266.67 points or 1.09 per cent lower at 24,188.37, its lowest close since May 16, 2014.