Forex traders said weak Asian currencies and strengthening of the greenback in the overseas market were the other factors that dragged down the local unit.
This picture has been used for representational purpose
The Indian rupee slipped 14 paise to 73.21 against the US dollar in early trade on Monday, as rising crude oil prices and weak domestic equities weighed on investor sentiments.
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Forex traders said weak Asian currencies and strengthening of the greenback in the overseas market were the other factors that dragged down the local unit.
At the interbank foreign exchange, the domestic unit opened at 73.21 against the dollar, registering a decline of 14 paise over its previous close.
On Friday, the rupee had settled at 73.07 against the American currency.
Also read: Sensex drops over 185 pts in early trade
"Asian currencies have started weaker this Monday against the greenback and will weigh on sentiments," Reliance Securities said in a research note.
Additionally, rising crude prices will also weigh on sentiments. Currently, Brent is trading near the USD 73.00/barrel and further gains will weigh on sentiments, the note added.
Global oil benchmark Brent crude futures rose 0.55 per cent to USD 73.09 per barrel.
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies rose 0.01 per cent to 90.56.
On the domestic equity market front, BSE Sensex was trading 158.78 points or 0.30 per cent lower at 52,315.98, while the broader NSE Nifty was down 59.85 points or 0.38 per cent at 15,739.50.
Foreign institutional investors were net buyers in the capital market on Friday as they purchased shares worth Rs 18.64 crore, as per exchange data.
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