Rupee scales back from 2-month peak in early trading

The local unit fell as oil prices rose on Monday as traders expected top exporter Saudi Arabia to push producer club OPEC to cut supply towards the end of the year. Brent crude oil futures were up 0.8 percent at $67.29 a barrel.

Meanwhile, foreign funds bought shares worth a net of Rs 844 crore Friday, the provisional data showed.

The rupee is the worst performing emerging market currency having lost almost 15 percent since January this year. Between April and September the rupee has plummeted more than 7 percent to the dollar.

In debt markets, the yields on the 10-year government bonds rose 0.05 percent to 7.82 percent after closing at 7.82 percent on Friday. Bond yields and prices move in opposite directions.