The rupee fell for the first session in four on Monday on the back of dollar demand from oil importers and caution ahead of the Reserve Bank of India's policy review that may give cues about its stance after recent measures to defend the currency.
The Reserve Bank of India is widely expected to keep rates and the cash reserve steady when it unveils monetary policy on Tuesday.
Forex dealers will keenly watch, instead, if the central bank indicates more measures to stabilise the currency or gives a timeframe for its current action.
After trading hours, the central bank said in a report that the priority for monetary policy was to restore stability in the forex market.
The central bank's cash tightening steps over the previous two weeks have pushed up the overnight rate to more than 10 percent, making the cost of rupee borrowing for currency speculation expensive.
The rupee has strengthened to as much as 58.69 since the RBI first unveiled its measures on July 15, but has never closed below 59 since then, and still remains within sight of a record low of 61.21