The rupee opened the day at 59.75 against the dollar and dropped 15 paise to trade at 59.91 against the dollar. This is the lowest level the rupee has hit since May 13, 2014. The currency had last closed at 59.76 on Friday.

Late last week the currency had lost ground on tensions in Iraq which led to a spike in oil prices. Since India imports a bulk of its crude and is vulnerable to increase in crude prices, the rupee has been reacting to tensions in Iraq.

Dealers say that domestically the fundamentals for the rupee are much better as the current account deficit is in very good shape and hence the rupee is not likely to weaken significantly from current levels.

However, external events like prolonged increase in crude prices on account of tensions in Iraq could lead to some depreciation in the currency. check currency rates here

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