Rupee registered marginal decline, depreciating 0.03 percent against dollar in interbank market. At close, domestic unit settled at 278.64, loss of 0.09 paisa against greenback.In open marker, unit changed hands by increase of Rs 1 for selling and Rs buying for around Rs 1.20 corresponding to rates in interbank market.

Globally, yen was a tad softer against dollar in trading thinned by Japanese holiday on Monday, with market participants still ambivalent about odds of a big Fed rate cut next month.

Oil prices, key indicator of currency parity, rose for fifth consecutive session on Monday, extending gains from previous week's more than 3 percent rise, as US recession fears eased and Middle East supply risks provided support.

Brent crude futures were up 70 cents, or 0.9 percent at $ 80.36 a barrel while US West Texas Intermediate crude futures rose 84 cents, or 1.1 percent to $ 77.68.