The Indian National Rupee declined to settle 7 paise lower at 74.95 on Monday against the US dollar, tracking weaker counterparts of Asia against the latter.

Higher crude oil prices were also responsible for the dip in the domestic currency.

The rupee had opened at 73.95 against one dollar in the interbank foreign exchange, gaining a further strength of 73.83 through the day but could not hold on to its gains.

According to Forex traders, the Indian currency declined despite record buying in equities as the US dollar strengthened against major Asian as well as other rivals. This emerged unfavourable at the domestic forex market.

Meanwhile, the dollar index, that determines the greenback’s strength against a group of six countries, rose to 92.35 at 0.14 per cent.

Global oil benchmark Brent crude futures ascended to USD 40.35 a barrel at 2.15 per cent.

According to Senior Research Analyst at Reliance Securities Sriram Iyer, the rupee may “appreciate marginally over the next few days amid portfolio flows into the domestic markets and a weaker US dollar. The only factor limiting the gains of the currency will be RBI coming in and mopping up the flows”.

Foreign investors bought equities on a net basis stood at Rs 4,548.39 crore, exchange data showed on Monday.

Registering a record closing high on the equity market front, the BSE Sensex settled at 704.37 points or 1.68 per cent higher at 42,597.43 on Monday.