The rupee was down 22 paise to close at a new lifetime low of 79.48 provisional against the US dollar on Monday, tracking a strong greenback overseas and subdued domestic equities.
The rupee's losses were restricted by receding crude oil prices in the international market, according to traders.
The local unit opened weak against the dollar at 79.30 and witnessed an intra-day high of 79.24 and a low of 79.49 on the interbank forex market.
It settled at 79.48 provisional down 22 paise over its previous close of 79.26.
The dollar index, which measures the strength of the dollar against a basket of six currencies, increased by 0.56 per cent to 107.60.
On the domestic equity market front, the BSE Sensex ended 86.61 points or 0.16 per cent lower at 54,395. The NSE Nifty declined by 4.60 points or per cent to 0.03, while the broader NSE Nifty declined by 4.60 points or per cent.
The global oil benchmark for crude oil fell 1.43 per cent to USD 105.49 per barrel.
Foreign institutional investors sold shares worth Rs 109.31 crore on Friday, as per exchange data.
Foreign investors have pulled out over 4,000 crores this month, despite the appreciation of the dollar and rising interest rates in the US.
Foreign portfolio investors FPIs have been declining over the last few weeks, which has resulted in a decline in the pace of selling.