The rupee fell 7 paise to 69.24 against the US dollar in opening trade Monday on increased demand for the greenback from importers and banks.
Forex dealers said strengthening of the American currency in the overseas market weighed on the domestic unit.
However, sustained foreign fund inflows and positive opening in domestic equities supported the rupee and restricted the fall.
The rupee opened strong at 69.07 at the interbank forex market, then lost ground and fell to 69.24 down 7 paise over its last close.
The rupee had settled at 69.17 against the US dollar on Friday.
Foreign institutional investors (FIIs) remained net buyers in the capital markets, putting in Rs 897.45 crore Friday, as per provisional data.
Meanwhile, brent crude futures, the global oil benchmark, fell 0.14 per cent to trade at USD 71.45 per barrel.
Benchmark equity index Sensex was trading 78.27 points up at 38,845.38, and the broader Nifty was at 11,671.20 points, up 27.75 points.