The rupee was trading at 61.52/53 after hitting 61.49, its lowest since December 12 and below its close of 61.89/90 on Friday.
Gains in the domestic share market and broad losses in the dollar helping the rupee but demand for the greenback from oil companies helps limit a further gain.
Surprise contraction in the factory output in November also hurting sentiment for the pair.
The consumer price inflation data due to be released at 5:30 p.m. (1200 GMT) will be crucial for further near-term direction.
