The rupee slipped by six paise to settle at Rs 63.87 against the US dollar on fag-end demand for the greenback from importers.
The rupee resumed higher at 63.75 as against the last weekend's level of 63.81 at the Interbank Foreign Exchange (Forex) market and firmed up further to 63.73 on initial selling of dollars by banks and exporters amidst a strong equity market.
However, it dropped afterwards to 63.91 on good dollar demand from importers due to fall in crude oil prices before concluding at 63.87, showing a loss of six paise or 0.09%.
The domestic currency had lost 13 paise, or 0.20%, in last four trading days.
Banks and exporters preferred to sell dollars initially on hopes of foreign capital inflows in view of recovery in the equity market.
In the global market, the dollar recorded its second straight weekly gain against the euro and the yen after a strong reading on US labour-market growth in July.
Oil prices fell in Asian trade on Monday, extending weeks of losses after a US report stoked expectations of a global glut of suppliers.
Meanwhile, the benchmark BSE Sensex fell by 134.67 points, or 0.48%, to close at 28,101.72 on Monday.