In the near term the rupee may trade in the range of 70.80 and 71.60, says Rushabh Maru, Research Analyst - Currency and Commodity, Anand Rathi Shares and Stock Brokers.
The Indian rupee was trading nearly a month low on November 11, following selling pressure in domestic equity market.
The currency was down 20 paise at 71.48 per dollar, the lowest level since since October 15.
It opened lower by 8 paise at 71.36 per dollar versus Friday's close 71.28.
It touched an intraday low of 71.53 per dollar.
The Sensex was down 35.58 points at 40,288.03, and the Nifty was down 13.80 points at 11,894.40.
"Moody's decision to change its outlook to negative from stable is a matter of concern. But it is unlikely to have major impact on the rupee in the near term," said Rushabh Maru, Research Analyst - Currency and Commodity, Anand Rathi Shares and Stock Brokers.
"There is lot of optimism regarding the trade deal between the US and China. Hence this may provide relief to the rupee."
"Domestic and global equities remain strong. This may also support the rupee. Focus will now shift to India's macroeconomic data to be released in the next week. In the near term the rupee may trade in the range of 70.80 and 71.60," he added.
Oil prices fell on Monday on renewed caution over the prospects of a trade deal between the United States and China, with investors shrugging off comments over the weekend by US President Donald Trump that talks were going well.
The dollar held near multi-week highs amid optimism that the United States and China would roll back tariffs that have hurt global growth.
The dollar-rupee November contract on the NSE was at 71.35 in the previous session. Open interest declined 2.97% in the previous session, said ICICIdirect.We expect the USD-INR to find supports at lower levels. Utilise downsides in the pair to initiate long positions, it added.Get access to India's fastest growing financial subscriptions service Moneycontrol Pro for as little as Rs 599 for first year. Use the code "GETPRO". Moneycontrol Pro offers you all the information you need for wealth creation including actionable investment ideas, independent research and insights & analysis For more information, check out the Moneycontrol website or mobile app.