Fresh capital outflows from foreign funds also affected the value of rupee against the US dollar, a forex dealer said.
At the Interbank Foreign Exchange (Forex) market, the domestic unit commenced lower at 59.95 from last Friday's close of 59.93.
It dropped further to a low of 60.2050 before concluding at 60.07, showing a fall of 14 paise or 0.23 per cent.
The rupee moved in a range of 59.90 per dollar and 60.2050 per dollar during the day.
The benchmark S&P BSE Sensex today moved down by 17.37 points, or 0.07 per cent. FIIs were net sellers of Rs 723.48 crore on last Friay as per provisional data from exchanges.
The dollar index was down by 0.07 per cent against its major global rivals.
Pramit Brahmbhatt, Veracity Group CEO said, the rupee started on a weak note due to some dollar demand from oil marketing companies.
"Even though the WPI data is at four-month low, the local equity market are traded negative. The trading range for the spot USD/INR pair is expected to be within 59.60 to 60.60," he added.
The benchmark six-month premium payable in December ruled steady at 233.5-235.5 paise. Far-forward contracts maturing in June, 2015 also unchanged at 472-474 paise both unaltered from Friday's closing level.
The Reserve Bank of India fixed the reference rate for dollar at 60.0050 and for the euro at 81.5990.
The rupee fell back against the pound to 102.80 from last close of 102.65 and also reacted downwards to 81.86 per euro from 81.55.
It, however, inched up to 59.19 per 100 Japanese yen from last close of 59.20.