At 2:21 p.m. (0851 GMT), the rupee was at 49.88/89 to the dollar, after dipping to 49.95, a level last seen on Jan. 25, according to Thomson Reuters data. The currency closed at 49.50/51 on Friday.
Traders said weak global risk sentiment caused by a slowing Chinese economy and Greece's debt crisis added to the selling in the rupee.
Most traders expect the rupee to see support around 50, a level beyond which the Reserve Bank of India would likely step in to support the currency.
The RBI has actively intervened in the market over the last few months, selling dollars while simultaneously resorting to a flurry of steps aimed at cutting speculation and improving dollar inflows.
India's benchmark share index was down more than 1.4 percent on worries the federal government would not be able to revive stalled reforms.
Copyright Reuters, 2012