The rupee on Friday staged a turnaround to close higher by 26 paise at 71.73 after heavy intervention by the Reserve Bank of India.
The rupee weakened further to hit a fresh low of 72.67 against the US currency on Monday on rising crude oil prices, strengthening dollar and a widened current account deficit.
Earlier the rupee resumed slightly lower at 72.18 against last Friday's closing level of 71.73 a dollar at the Interbank Foreign Exchange here.
The domestic unit witnessed intense volatility and traded between 72.07 and hit all-time low of 72.48 during morning deals. During the afternoon session the rupee breached 72.50 mark against the US dollar for the first time ever amid weak Asian cues.
India's current account deficit (CAD) widened to USD 15.8 billion in April-June in value terms this year as against USD 15 billion in the same quarter of 2017-18, mainly due to a higher trade deficit, according to RBI data released Friday.
Domestic macro situation and dollar's strength amid fear of currency crisis continued to spook the rupee, a dealer said.
Overseas, the US dollar edged higher against a basket of currencies in early Asian trade on strong US August jobs data and fears of an escalation in the China-US trade conflict.
