Traders said there was also some importer demand seen in afternoon trade, but intermittent dollar selling by the central bank is likely to prevent a steep fall in the unit.

Sentiment has also been weaker after the central bank held rates steady in a surprise move on Friday and pushed the rupee to its previous record low of 74.23.

The partially convertible rupee was trading at 74.24/25 per dollar at 0751 GMT, after hitting 74.28 earlier and weaker than its previous close of 74.0750.