The rupee declined by 13 paise to close at 72.96 (provisional) against the US currency on Monday as rising crude oil prices weighed on investor sentiment.
However, gains in domestic equities and weaker US dollar overseas helped restrict rupee loss to some extent.
At the interbank forex market, the local unit opened weak at 72.88 against the greenback and traded in the range of 72.98-72.86 during the session.
The rupee finally ended at 72.96 against the American currency, registering a fall of 13 paise over its previous close.
On Friday, the rupee had settled at 72.83 against the American currency.
Brent crude futures, the global oil benchmark, surged 1.90 per cent to $67.70 per barrel.
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, fell 0.15 per cent to 89.87.
On the domestic equity market front, the BSE Sensex ended 111.42 points or 0.22 per cent higher at 50,651.90, while the broader NSE Nifty advanced by 22.40 points or 0.15 per cent to 15,197.70.
Foreign institutional investors were net buyers in the capital market on Friday as they purchased shares worth Rs 510.16 crore, as per exchange data.