The Indian rupee lost ground on Monday on selling from overseas investors with a waning appetite for risk, though it was lifted off its lows by exporters who repatriated profits. The rupee ended at 40.41/42 per dollar, slipping from Friday's 40.34/35, but recovering from an early low of 40.52.
It hit a nine-year peak of 40.20 hit last month. "Offshore investors tried to drive the rupee lower, but there are so many exporters looking to sell (dollars) when the rupee weakens a bit," said a senior dealer with a foreign bank.
The rupee took early cues from fellow high-yielding Asian units such as the Indonesian rupiah and the Philippine peso, which fell on Monday as more signs of a weakness in global credit markets prompted investors to cut riskier assets.