On Friday, rupee had shed 16 paise to end at 71.19 against dollar.Mumbai:The rupee on Monday weakened by 9 paise to close at 71.28 against US dollar amid rise in demand for greenback from exporters and unabated foreign fund outflows.
This is second successive session of fall for domestic currency, during which it has lost 25 paise.
Forex traders said foreign fund outflows and a stronger dollar impacted trading pattern for local unit.
At Interbank Foreign Exchange (forex) market, rupee opened lower at 71.38 and fell further to touch day's low of 71.53.It, however, pared some losses and finally ended at 71.28 per dollar, down by 9 paise against its previous close.
On Friday, rupee had shed 16 paise to end at 71.19 against dollar.
"Indian rupee extended last week's losses after Reserve Bank of India Governor Shaktikanta Das flagged concerns about sticky core inflation.
Higher oil prices and worries about a wider fiscal deficit also weighed on sentiment," said VK Sharma, head PCG and Capital Markets Strategy, HDFC Securities.
The dollar index, which gauges greenback's strength against a basket of six currencies, was trading higher by 0.01 per cent at 96.34.
Brent crude, global oil benchmark, was trading at $62.51 per barrel, down by 0.30 per cent.
On a net basis, foreign portfolio investors (FPIs) sold shares worth Rs 299.79 crore Monday, while domestic institutional investors (DIIs) were net buyers to tune of Rs 520.80 crore, provisional data available with BSE showed.The BSE benchmark Sensex continued its winning run for fifth straight session Monday, rallying 192 points, while NSE Nifty inched towards 11,000 mark, riding on stronger-than-expected Q3 earnings by some bluechip companies amid positive global cues.
Most of other Asian bourses rose as investors hoped for more stimulus from China after disappointing growth, amid optimism about US and China progressing with trade talks.
The Financial Benchmark India Private Ltd (FBIL) set reference rate for rupee/dollar at 71.3782 and for rupee/euro at 81.2308.
The reference rate for rupee/British pound was fixed at 91.8913 and for rupee/100 Japanese yen at 65.15.