The Indian rupee lost ground on Monday on routine month-end dollar demand from importers, though the weak spell was not expected to last with global oil prices easing.
The unit closed at 46.3650/3750 per dollar, down from Friday's 46.3050/3150.
Dollar demand usually bunches up at the end of the month, when many companies make import payments.
"The demand could persist for another day, and we could see the rupee fall down to 46.4000. But once the demand goes through, the rupee should recover," said a trader at a private bank.
Sentiment on the Indian currency has picked up following a decline in global prices of oil, India's top import, from record highs.
Sentiment is also positive after Standard & Poor's revised last week the outlook on India's "BB" long-term foreign currency rating to positive from stable on improving external liquidity.
Capital inflows could pick up if local firms step up overseas borrowings.
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