The Indian Rupee depreciated by 0.38 paise to Rs 66.84 against the US dollar on Monday following firm dollar demand from banks and importers.
The Indian Rupee opened sharply lower at 66.57 per dollar against the previous closing level of 66.46 at the Interbank Foreign Exchange (Forex) market due to the negative sentiment in European and US stock markets.
It dipped further to 66.84 at 14.40 pm local time. The rupee was hovering in the range of 66.57 and 66.79 during the morning deals.
According to dealers, volatile domestic equities coupled with higher dollar overseas were the reasons for the weakening of rupee.
The dealers further added that the USD-INR currency pair would continue to get influenced by global forex and domestic equity moves and the exporters are expected to hedge their US dollar receivables on upticks towards 66.80 per dollar.
The Indian Rupee is expected to trade in the range of 66.35-66.85 per dollar for the day.