The rupee depreciated by 23 paise to settle at a five-month low of 86.78 (provisional) against the US dollar on Monday, weighed down by a stronger greenback and fluctuating crude oil prices following a US strike on Iran's nuclear facilities.

According to forex experts, a sharp decline in domestic equity markets also contributed to the rupee's weakness.

However, sustained foreign institutional investor (FII) inflows and an increase in the country's foreign exchange reserves helped limit further losses.