The Indian rupee on Monday closed at a near 11-week low against the US dollar, tracking a fall in domestic equity markets and subdued Asian currencies.

The rupee closed at 70.53 a dollar - a level last seen on 1 March - down 0.37% from its previous close of 69.91. The Indian currency had opened at 70.12 a dollar and hit a low of 70.54 during the day.

Other Asian currencies traded lower amid concern that the U.S. and China may not be able resolve their trade differences within the one-month timeline set by Washington.

Back home, the benchmark Sensex index closed 1% lower at 37,090.82 points. The Sensex has fallen nearly 1,870 points since start of April. Year to date, the index has risen 3%.

"The weakness came on the back of negative global markets as investors were concerned about global economic growth after trade negotiations between the US and China appeared to be at a deadlock", said HDFC Securities in a recent note.

Bond yield fell as weak industrial production and expectation of inflation staying below the Reserve Bank of India's target stoked hope of a rate cut in the next policy.

India’s consumer price inflation data will be out after 5.30pm today. CPI likely rose 2.99% year-on-year in April from 2.86% last month, according to a Bloomberg survey. Industrial production fell 0.1% in March year-on-year against the expected 1.2% increase, government data showed after close of markets Friday

The 10-year bond yield was at 7.391% compared with Friday's close of 7.413%.

So far this year, the rupee has declined 1.06% against the US greenback. During the period, foreign investors bought $10.09 billion in equity and sold $849.60 million in debt market.

(Bloomberg contributed to this story

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