Snapping its two-day gains, the rupee on Monday declined by 48 paise to settle at nearly four-week low of 62.17 against the US currency due to capital outflows and fresh dollar demand from banks and importers.
Persistent fall in equity markets and a strong dollar in overseas markets also impacted the rupee sentiment here, dealers said.
The rupee resumed sharply lower at 62.00 as against last close of 61.69 at the Interbank Foreign Exchange market.
It dropped further to 62.21 per dollar before closing at nearly 4-week low at 62.17, a loss of 48 paise or 0.78%.
It had last ended at 62.18 on January 14, 2015. The local currency hovered in a range of 62.2150-61.9750 per dollar during the day. It had gained by six paise 0.10% in the previous two days.
"Rupee traded weak today taking cues from weak local equities and a strong dollar," Veracity Group CEO Pramit Brahmbhatt said.