The rupee last traded at 81.84 to the dollar, down from 81.6850 on Friday.
The local unit held a narrow 81.75 to 81.90 range during the session.
The central bank has likely been mopping up dollar following rupee’s rally to above 81.
New COVID-19 flare ups in China have cast doubts on hopes that the government could soon ease its tough restrictions.
That has boosted the dollar and weighed on demand for the yuan.
Shares in Hong Kong and China declined, while futures pointed to a weaker opening for U.S. equities.
Indian equities fell by the most in over a month.