The rupee fell below the 60-level against the American currency after a gap of over one month by dropping 28 paise to 60.05 on sustained dollar demand from importers amid rise in crude oil prices.
The local currency moved in a range of 59.80 and 60.05 per dollar during the morning trade on Monday.
It had last traded at 60.05 on May 12, 2014.
Crude oil prices rose to nine-month high in Asian trade today as investors kept a wary eye on the worsening crisis in Iraq, where insurgents were advancing towards capital Baghdad.
US benchmark West Texas Intermediate for July delivery jumped 35 cents to $107.26 a barrel in late-morning trade.
Meanwhile, the benchmark BSE Sensex dropped 104.30 points, or 0.41 per cent, to 25,132.87 at 1000 hours.