The rupee surrendered all its early gains to settle 7 paise lower at 74.15 (provisional) against the US dollar on Monday, in line with weaker Asian peers against the greenback.
Higher crude oil prices also put pressure on the Indian currency.
At the interbank foreign exchange (forex), the domestic currency opened sharply higher at 73.95 a dollar and gained further strength to touch a high of 73.83 during the day.
It, however, could not hold on to the gains and finally settled at 74.15 against the greenback, 7 paise lower over its previous close.
In the previous session, the rupee had gained 28 paise to end at 74.08 against the US dollar.
The dollar index, which gauges the greenback's strength against a basket of six currencies, rose 0.14 per cent to 92.35.
Brent crude futures, the global oil benchmark, rose 2.15 per cent to USD 40.30 per barrel.
Forex traders said that the rupee declined in spite of record buying in equities as strengthening US dollar against key rivals in Asia and elsewhere turned sentiment unfavourable in domestic forex market.
On the equity front, the BSE Sensex ended 704.37 points or 1.68 per cent higher at 42,597.43 -- its record closing high.
Similarly, the broader NSE Nifty ended at a lifetime high of 12,461.05, up 197.50 points or 1.61 per cent.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.