Mumbai: The rupee dropped 4 paise to 86.72 against the US dollar on Monday amid a steep fall in the domestic equity markets.
However, a flat greenback against major currencies prevented further decline in the domestic unit, according to forex traders.
At the interbank foreign exchange, the local unit opened at 86.58, went up 10 paise from Friday’s close of 86.68, but gave way through the session. It eventually settled at 86.72, lower by 4 paise than the previous day’s close.
Meanwhile, the dollar index was trading flat at 106.61. The RBI data released on Friday showed India’s forex reserves dropped $2.54 billion to $635.721 billion in the week ended February 14, snapping the three-week rising streak.