At 9:02 a.m., the rupee was at 54.89/90 to a dollar as against 55.14/15 last close.
On Friday, the rupee closed at 55.15 against the dollar, registering a third consecutive weekly gain of 0.6 per cent.
Investors are anxiously watching clues from Federal Reserve this week on its stance over a stronger monetary policy to support the U.S. recovery.
USD/INR 1-month NDF at 55.13 as against NY close at 55.00-05.
Asian stocks were trading with cuts with MSCI's Asia ex-Japan index up 0.31 per cent, Nifty futures in Singapore were down 0.26 per cent.
The euro and high-beta currencies like the Australian dollar started trading on Monday with a spring in their step, following a rally late last week in part on the back of diminishing worries about China's economic health.
Copyright @Thomson Reuters 2012