The rupee weakened to its lowest in nearly a month, tracking a decline in domestic stocks as inflation surged and as oil prices climbed to their highest in nearly three weeks on supply fears from the prospect of more sanctions on Russia as the crisis in Ukraine deepens.
India's inflation data for March suggests spiralling price pressures, but that does not yet fully reflect the fallout of the Ukraine war, which has pushed energy rates and commodities' costs to surge.
"The rise in wholesale inflation is quite alarming and has become a big challenge for the common man," Ved Jain, economist and former president of The Indian Chartered Accountants of India, told NDTV.
Crude prices eased to around $112 per barrel on Monday after rising sharply in early trade, with oil contracts trading within a $3 range - between about $111 and $114 a barrel.