The rupee is trading at 55.77/78 after falling as much as 55.84, its lowest since July 12. The pair closed Friday at 55.32/33.
Senior dealer with foreign bank says petroleum company and oil companies spotted buying dollars.
Global risk aversion weighs on the rupee: the euro falls to a near 12-year low against the yen and plumbs record lows versus the Australian dollar on Monday.
Local stocks down in line with Asian peers, Sensex falls 0.9 percent.