MUMBAI: The rupee depreciated by 16 paise to 68.58 against the US dollar in early trade on Monday.
The BSE Sensex crashed 405.67 points, or 1.03 per cent, to trade at 39,107.72 Monday.
Similarly, the broader Nifty sank 128 points, or 1.08 per cent, to 11,683.15.
At the interbank foreign exchange, the local unit opened weak at 68.49 per dollar and fell further to quote at 68.58, showing a decline of 16 paise over its previous close.
On Friday, the rupee settled 8 paise higher at 68.42 against the dollar.
The dollar index, which gauges the greenback's strength against a basket of six currencies, fell by 0.07 per cent to 97.21.
Meanwhile, Brent crude futures, the global oil benchmark, declined 0.02 per cent to trade at USD 64.22 per barrel.
As per provisional data, Foreign institutional investors (FIIs) were net sellers in the capital markets, pulling out Rs 89.38 crore on Friday.
Meanwhile, the domestic institutional investors bought shares worth Rs 275.63 crore.