The rupee falls to 53.70/71 versus its Friday's close of 53.50/51 on the back of dollar demand from oil firms and other importers.

Dealers expect trading to be rangebound with most Asian markets closed for the lunar new year holidays and suggest volumes may be slightly lower than average.

Traders will be watching the domestic sharemarket moves for direction during the day.

Oil firms have been major buyers so far with supply being very limited.

The pair is expected to hold in a 53.50-53.80 range.