The rupee skidded by 11 paise to close at 71.24 against US dollar as rising oil-prices and strengthening greenback weighed on market sentiment. At the Interbank forex-market, the domestic unit opened strong at 71.06 and rose to 70.91. However, it could not hold on to the gains and fell to a low of 71.29 before finally ending at 71.24 a fall of 13 paise.

Crude settled down in New York on Monday after climbing earlier as American sanctions against OPEC's No. 3 producer formally kicked in. The Trump administration granted waivers to China and seven other major buyers so they can continue buying some Iranian crude. Meanwhile, expanding domestic inventories dampened worries about tightening global supplies.

Oil extended its slide to six-month lows as US softened its crackdown on Iranian-exports and American supplies surged, easing concerns of an impending shortage. Futures slumped 6.3% this week, biggest-drop since early February. The US has agreed to let eight-countries including Japan, India, South Korea keep buying Iranian-oil after sanctions kick in this weekend to prevent a spike in prices, senior administration official said.