Traders said the rupee's losses were, however, limited by expectations that the Reserve Bank of India (RBI) would raise interest rates at its policy review on Tuesday, to head off inflation, offering some support to the local currency.
The partially convertible rupee ended at 45.16/17 per dollar, one-fifth of a percent weaker than Friday's 45.07/08 close but well off a morning low of 45.225.
"The market is largely waiting to see what happens at tomorrow's policy review and to that extent volumes were on the lower side," a dealer at a state-run bank said. "A rate increase tomorrow would give a little bit of support to the rupee."
Traders expect the rupee to gain a little if India's central bank raises its key short-term interest rate by a quarter percentage point to head off accelerating inflation, as expected.
Higher local rates would raise the rate differential between India and the United States, helping to lure foreign capital.