The dollar index, which remains below its mid-July high, was last up 0.9% at 106.63. It was up about 0.2% just before the report.
The dollar index fell 0.338% at 106.110, with the euro up 0.35% to $1.02.
At the interbank foreign exchange market, the local currency opened at 79.21 and dropped to an intra-day low of 79.85. It clawed back some lost ground to finally end at 79.40, down 25 paise over its previous close of 79.15.
At the interbank foreign exchange market, the local currency opened lower at 78.70 and fell further to settle at the day’s low of 79.21.
Worsening economic outlook and faltering risk appetite will support the dollar for some time, an economist said.
China’s offshore yuan fell against the dollar, touching its lowest level since mid-May.
The July premium declined to 2.49 rupees from 2.53 in the previous session and the 1-year implied yield dropped to 3.21% from 3.24%.
The US dollar index was volatile after data showed US manufacturing activity slowed less than expected in July. But a key report for investors this week will be the US jobs report on Friday.
Unconfirmed reports of more than $75,000 collected at the dump at Las Parejas in central Argentina in recent days have piqued such frenetic interest that authorities have had to close the facility.
At close, the home currency ended at 79.02 a dollar -- a level last seen on July 4, up 0.23 percent from its Friday's close of 79.25.
At the interbank forex market, the local unit opened higher at 79.16 on gains in stocks and fall in crude oil.
The reserves has been declining amid continuing volatility in the rupee which has also significantly depreciated against the US dollar.
The rupee breached the psychologically important level of 80 per dollar for the first time on July 19 and hit a lifetime low of 80.06. Since then, the currency has appreciated and now stands at 79.90 per dollar
History offers centuries of proof that overseas borrowing courts chaos when the US currency surges.
If the economy and inflation weaken, the Fed is likely to pause and the US currency will reverse direction
During the day, the local unit witnessed an intra-day high of 79.86 and a low of 79.92 against the American currency.
Southeast Asia’s biggest economies are getting interoperable with their currencies thanks to technology. It’s a small but important step in de-dollarization.
According to RBI data, the nation’s firms had $79 billion of unhedged offshore loans at the end of March, about 44 per cent of their total overseas borrowings.
At the interbank foreign exchange market, the local currency opened at 79.91 and later slid to a low of 80.05 to a dollar.
Rupee has hit the 80 mark against the dollar for the first time ever. The currency has been in a free fall and depreciated for the eighth consecutive session against the backdrop of foreign fund outflows, widening trade and current account deficits. Safe-haven demand for US dollars on rising global recession risks has also contributed to the weakness. The steep fall in the domestic currency will lead to costlier imports and even more expensive overseas education and travel. Watch the video to find out why you should care about a depreciating rupee.
Traders said the central bank sold dollars through state-run banks intermittently through the session, as has been the case in recent weeks.
Spot gold rose 0.2 percent to $1,712.79 per ounce by 0930 GMT. U.S. gold futures were little changed at $1,710.20.
According to the RBI, a 5 percent depreciation of the rupee from its baseline assumption could edge up inflation by around 20 bps.
Brent Crude futures for September settlement were up $4.37, or 4.3%, to $105.53 a barrel by 12:30 p.m. EDT (1630 GMT), having gained 2.1% on July 15.