The rupee depreciation witnessed a 5 year fall on Monday. It has lost by 17.6% so far this year. The rupee was very volatile on Monday. 

There was no inflow of dollar in the market as the investors and oil firms were purchasing dollars. The traders have forecasted further depreciation of rupee to touch as low as 49 against the dollar. It was 1.5 percent weaker than last Friday and closed at 47.80/81 per dollar.

Meanwhile, the price of oil fell below$90 a barrel which is the lowest level in eight months. The global financial crisis is a leading cause of decline in the price of crude oil as per some industry players. 

Oil is the biggest import commodity of India and Indian refineries are forced to purchase oil on the same price causing increase in the demand of dollar and decrease in the value of rupee. 

RBI is doing its best to stabilize the value of rupee. It has started to sell dollars through state-run banks to control depreciation of rupee. But it failed to serve the purpose as the demand of dollar is still high in the market.