Besides increased demand from importers for the US currency, slowing economic growth, which slipped to 4.4 percent in the April-June quarter, the slowest pace in at least four years and dollar's strength against other currencies, put pressure on the domestic currency, forex dealers said.
They said, however, a higher opening in the domestic equity market, capped the rupee's fall.
It had gained 85 paise to close at 65.70 against the US Dollar on Friday, boosted by the Prime Minister's assurances in Parliament on combating the currency's fall and reviving economic growth.
Meanwhile, the BSE benchmark Sensex rose by 132.65 points, or 0.71 percent, to 18,752.37 in morning trade on Monday.


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