The rupee depreciated by 19 paise to close at its fresh lifetime low of 79.45 against the US dollar on Monday amid broad-based dollar demand and foreign capital outflows.
However, receding crude oil prices in the international market restricted the loss for the rupee, which posted its third straight session of decline.
At the interbank forex market, the local unit opened weak at 79.30 against the greenback and witnessed an intra-day high of 79.24 and a low of 79.50.
It finally settled at 79.45, down 19 paise over its previous close of 79.26.
The dollar index, which measures the greenback's strength against a basket of six currencies, advanced 0.56 per cent to 107.60.