The rupee depreciated by 99 paise to 70.59 against the dollar on Monday. According to analysts, US-China trade related concerns weighed on the investor community and kept pressure on the rupee. The rupee opened lower at 70.20 at the forex market and then fell further to 70.59. The rupee had settled at 69.60 against the dollar on Friday.

"The decline in rupee was due to the slump in Chinese currency," said Ajay Bagga, executive chairman at OPC Asset Solutions. The Chinese yuan weakened beyond 7 per dollar, its lowest level against the dollar since August 2010 in morning trade on Monday. The weakening was largely owing to US President Donald Trump's plan to impose fresh tariffs on another $300 billion in Chinese goods. The onshore yuan also tumbled, hitting 7.0307 on Monday morning trade to reach its lowest level since 2008.

Brent crude futures, the global oil benchmark, fell 1.23 per cent to $61.13 per barrel.

Foreign institutional investors (FIIs) remained net sellers in the capital markets, pulling out Rs 2,888.06 crore on Friday, as per provisional data.

The Sensex fell as much as 701 points to an intraday low of 36,443.41 and the NSE Nifty 50 Index slumped below its important psychological level of 10,800.