The Indian rupee today turned weak and lost 11 paise to hit two-month lows of 49.11 against the US dollar in early trade on expectations of increased capital outflows.
Hardening of dollar against other leading currencies too put pressure on the local unit, forex dealers said.
At the Interbank Foreign Exchange (forex) market, rupee was quoted at 49.11 a dollar, lower by 11 paise from its previous close of 49.00/02.
The domestic unit closed 30 paise down at 49.00/02 against the US currency on Friday.
Forex dealers said the rupee remained under pressure on hopes of increased capital outflows by foreign funds as the local stock markets are expected to open on a weak note in line with other Asian bourses, which were down up to 1.94% in the morning trade on Monday.
The rupee dropped 2.3% last week, its biggest weekly fall since early March.
India?s 10-year bonds gained after crude oil fell below $60 per barrel for the first time since May, tempering concern that local fuel prices will increase and lead to inflation.
Yields on most-traded debt due 2019 eased after oil prices dropped 10.3 percent last week, the biggest decline since January. India, which imports almost three-quarters of the oil it uses, raised fuel costs last month for the first time in more than a year. The notes also gained after the government said it will sell bonds worth 120 billion rupees ($2.4 billion) this week, 20% less than last week.