The rupee slips to 52.65/67 from Friday's close of 52.85/86, after hitting a session high at 52.59.
Dealers cite foreign fund inflows into local shares and exporters' dollar sales.
Lack of dollar demand from oil importers at the start of a new month also supporting the rupee, dealers say.
Foreign institutional investors bought a net Rs 19,300 crore in Indian stocks in September, their strongest purchases this year since February.
