Besides, fresh bouts of selling in local equities added pressure on the local currency.
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Finally, the rupee ended at 65.31, 30 paise weaker from its previous close of 65.01 on Friday.
As soon as the rupee opened weaker below its psychological 65 level mark against the dollar, forex dealers said that there was heightened demand for dollars from importers and corporates to cover their unhedged foreign currency exposure.
The rupee had recovered 10 paise to shut at sixty five against the US dollar in Friday’s commerce on recent promoting of dollar by banks and exporters on hopes of resumption of overseas capital inflows into fairness markets.
The country’s exports contracted for the eighth straight month in July to Dollars 23.13 billion, pushing the trade deficit to USD 12.81 billion.
Analysts said the rupee may fall to 137 levels in the short term if the central bank allows it to depreciate, in line with the weakening seen in other global currencies against the dollar.
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The US dollar index, which measures greenback’s strength against a trade-weighted basket of six major currencies, was up 0.14 percent at 96.74. Its 52-week range was 60.20-65.38. While, the RBI’s reference rate for the Yen stood at 52.42, the reference rate for the Great Britain Pound (GBP) stood at 102.2324.
