The rupee depreciated by 16 paise to close at 73.29 (provisional) against the US dollar on Monday even as the domestic equity market was trading with significant gains.
The Indian currency opened at 73.16 at the interbank forex market and touched an intra-day high of 73.08 and a low of 73.41 against the greenback.
It finally settled for the day at 73.29, down 16 paise over its last close of 73.13 a dollar.
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, fell 0.17 per cent to 93.68.
On the domestic equity market front, the BSE benchmark Sensex was trading 348.68 points higher at 39,045.73, and the broader NSE Nifty rose 95.40 points to 11,512.35.
Foreign institutional investors were net buyers in the capital market as they purchased shares worth Rs 1,632.25 crore on a net basis on Thursday, according to provisional exchange data.
Forex and equity markets were closed on Friday on account of Mahatma Gandhi Jayanti.
Brent crude futures, the global oil benchmark, rose 2.16 per cent to USD 40.12 per barrel.