The rupee closed on a new low of 79.44 against the US dollar even as the greenback continued to make gains against most currencies.

The Indian currency’s previous low was at 79.37 on 5 July.

Starting the week on a weak note, the rupee fell to a new intra-day record low of 79.48 per dollar before firming up to close Monday at 79.44.

"Strong US Dollar Index and spike in US bond yields caused the rupee to depreciate. We suspect intervention from the central bank prevented a sharper depreciation. Over the near term, FPI outflows and speculative short build up in rupee can drive USDINR even higher, towards 79.75/80 levels. We expect a range of 79.20 and 79.80/85 on spot," said Anindya Banerjee, VP, currency derivatives & interest rate derivatives at Kotak Securities.