Mumbai: In a volatile trade, the rupee continued downslide for the fifth straight session closing 10 paise down at nearly 10-week low following weak stock markets and sustained dollar demand from importers.
At the Interbank Foreign Exchange (Forex) market, the domestic unit resumed a tad higher at 51.15/16 a dollar from last close of 51.17/18 and immediately touched a high of 51.05.
However, steep fall in local equities amid continued dollar demand from importers, mainly oil refiners, to meet their month-end requirements weighed on the rupee and it fell back to a low of 51.48.
The domestic currency recovered some lost ground at the fag-end and closed at 51.27/28, a fall of ten paise.
The BSE benchmark Sensex slumped by nearly 309 points or 1.78 percent, which mainly put pressure on rupee.
"The prices were weighed by month-end dollar payments but profit booking and some exporter level hedging cooled off the prices. The price was helped by expectations of aggressive interventions by the Reserve Bank as excessive weakness of the rupee is inflationary and also as the volatility in the pair has increased in recent past," Alpari Financial Services (India) CEO Pramit Brahmbhatt said.
"High vulnerability to crude oil price shocks, widening current account deficit and risk of sticky inflation continue to weigh on sentiment for the rupee and the domestic unit is likely to underperform its Asian peers due to high correlation with global crude oil prices," he added.
The dollar index was up by about 0.15 percent against a basket of currencies while New York crude oil was trading below USD 107 a barrel in European market on Monday.

India Forex Advisors CEO Abhishek Goenka said, "After a steep rise till 51.48 levels on Monday we can see a correction till 51 levels again. Importers should promptly take covers at these levels."
The rupee premium for the forward dollar ended slightly better on stray paying pressure from banks and corporates.
The benchmark six-month forward dollar premium payable in August finished at 167-1/2-169-1/2 paise from last weekend's close of 167/169 paise and far-forward contracts maturing in February concluded better at 302-304 paise from 301-303 paise.
The RBI has fixed the reference rate for the US dollar at 51.3090 and for euro at 67.9785.
The rupee continued to rule weak against the pound sterling to end at Rs 81.40/42 from last close of Rs 80.87/89 and also dropped further against the euro to Rs 67.90/92 from Rs 67.36/38.
It, too, softened against the Japanese yen to Rs 61.80/82 per 100 yen from Rs 61.78/80.