The rupee declined by 21 paise to close at a three-week low of 71.23 against the US currency on Monday as investors rushed to safe haven bets on fading hopes of an initial trade deal between the US and China.
Weak Chinese trade data also weighed on the domestic currency, analysts said.
At the interbank foreign exchange market, the rupee opened higher at 70.83 and touched an intra-day high of 70.74 against the American currency.
However, later the local unit pared initial gains and finally settled at 71.23 against the US dollar, down 21 paise over its previous close. On Friday, the domestic unit had closed at 71.02 against the US dollar.
