The dollar index was trading 0.27% higher at 93.44.
The Indian rupee on Monday closed 26 paise lower at 73.74 (provisional) against the US dollar, tracking a strong US currency in the overseas market and a muted trend in domestic equities.
At the interbank forex market, the local currency opened at 73.82 and finally closed at 73.74 a dollar for the day, down 26 paise over the previous close.
In the previous session, the rupee had closed at 73.48 against the US dollar on Friday.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.27% higher at 93.44.
“The Indian rupee opened on the back foot as markets are in a risk aversion mood, triggered by concerns over Chinese property developer Evergrande’s debt crisis,” said Dilip Parmar, Research Analyst, HDFC Securities.
“Volatility buyers are active in the forex markets as fourteen central banks will appear this week in addition to important FOMC, rate decisions and elections in Canada and Germany,” Mr. Parmar said.
“INR/USD pair is expected to find resistance near 74, while support is at 73.40,” he said.
Global oil benchmark Brent crude futures fell 1.79% to $73.99 a barrel.
On the domestic equity market front, the BSE Sensex closed 524.96 points or 0.89% lower at 58,490.93, while the broader NSE Nifty ended 188.25 points or 1.07% lower at 17,396.90.
Foreign institutional investors were net buyers in the capital markets on Friday as they bought shares worth Rs 1,552.59 crore, according to exchange data.
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