Mumbai: The rupee depreciated by 11 paise to close at an all-time low level of 84.91 against the US dollar on Monday, dragged down by a negative trend in domestic equities.
Forex traders said the Indian rupee declined on weak domestic markets and rising US bond yields. However, a soft US dollar cushioned the downside.
At the interbank foreign exchange, the rupee opened at 84.83 and touched 84.89 against the greenback during intraday trade.
The unit finally ended the session 11 paise down at 84.91 against the dollar.
On Friday, the rupee rebounded from its all-time low level and settled with a gain of 8 paise at 84.80 against the US dollar.
The unit’s previous all-time low level was recorded on December 12 when it closed at 84.88 against dollar.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading marginally lower by 0.14 per cent at 106.85.
Meanwhile, India’s forex reserves dropped by $3.235 billion to $654.857 billion for the week ended December 6, the RBI said on Friday. In the preceding week, the reserves had increased by $1.51 billion to $658.091 billion, ending a multi-week decline in overall kitty.