The decline came even as local equities firmed up amid sustained capital inflows. A weak dollar overseas also failed to stem the rupee's fall, a forex dealer said. (Agencies)
At the interbank foreign exchange market, the rupee resumed lower at 61.15 a dollar from the previous close of 61.07. It then dropped to the day's low of 61.55, a loss of 48 paise or 0.79 percent. In the previous two sessions, the currency had gained 86 paise.
"The rupee was seen depreciating against the US dollar on Monday due to weak IIP data released on Friday, WPI released on Monday and dollar demand," said Abhishek Goenka, CEO of India Forex Advisors. Market will continue to remain volatile amid US debt ceiling issue."
The government said wholesale price inflation was at a seven-month high of 6.46 percent in September, compared with 6.1 percent in August.
The index of industrial production grew 0.6 percent in August compared with 2.8 percent in July, the government said.
The 30-share S&P BSE Sensex climbed 78.95 points. Overseas investors bought shares worth a net Rs 1,010.45 crore on October 11, according to provisional stock exchange data.
The dollar index was down 0.14 percent against a basket of six major global currencies.
The decline came even as local equities firmed up amid sustained capital inflows. A weak dollar overseas also failed to stem the rupee's fall, a forex dealer said.