The session started on Monday on a flat note against rising and persistent foreign capital outflows.
At the interbank foreign exchange, the opened at 82.79 against the dollar and lost ground to later trade at 82.83, registering a fall of 1 paisa over the last close.
The previous session on Friday fell by 3 paise to close at 82.82 against the dollar.
The dollar index, which gauges the strength of the dollar against a basket of six currencies, was trading 0.11 per cent lower at 104.31.
On the domestic equity market front, the Sensex was trading 434.69 points or 0.73 per cent higher at 60,279. The NSE Nifty advanced by 128 points or 0.72 per cent to 17,934. The global oil benchmark Brent crude futures rose by 3.63 per cent to USD 83.92 per barrel.
Foreign institutional investors offloaded shares worth Rs 706.84 crore, as per stock exchange data, a net seller in the capital market.
The global market is trying to adjust to the constant re-evaluation of the dollar, as the USD INR pair is expected to remain in a period of consolidation, according to experts.
The reemergence of COVID 19 is likely to make any investment decision challenging in the near term.