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MUMBAI: The Indian rupee slipped to its weakest closing level on record on Monday, pressured by a decline in the offshore Chinese yuan and broad-based dollar bids amid a prevailing bearish bias on the local currency.

The rupee ended at 85.5350 against the US dollar, down marginally from its close of 85.5325 in the previous session.

While the local unit touched a peak of 85.44 during the session, it surrendered its gains in the latter half of the day in the face of broad-based dollar bids from banks and as its regional peers declined, traders said.

On the day, Asian currencies were mostly lower while the dollar index gained 0.1% to 108.1. The offshore Chinese yuan was down 0.2% at 7.31, pulled down by rising US bond yields.

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