The Indian rupee eased to its lowest finish in over a week on Monday, with investors paring holdings in the high-yielding local unit as global appetite for risky assets waned, and on dollar demand from oil refiners.
The rupee ended at 40.8750/8850 per dollar, slipping from Friday's 40.77/78, and ending at its weakest since June 14. It has been trading in a 40.50-41.25 range since the central bank knocked it from a nine-year high of 40.28 in late May.
"There was good offshore interest for dollars today, which is linked to the unwinding of some carry trades," said a dealer with a private bank, who expects the rupee to test 41 per dollar this week.