Mumbai: The rupee declined 38paise -- steepest in more than five weeks -- to settle at 85.82 against the US dollar on Monday amid the wide-spread global turbulence over escalated tariff war and fear of a global economic slowdown.

A steep decline in crude prices and a weaker American currency failed to arrest the fall in domestic currency due to the withdrawal rush by foreign as well as domestic equity investors, forex traders said. They said the currency exchange markets globally faced extreme volatility as investors tried to escape risks, following the US administration’s sweeping reciprocal tariffs on multiple countries and China’s retaliatory move on the American imports.

On the domestic macroeconomic front, market participants were watchful as the Reserve Bank of India’s (RBI’s) monetary policy committee began its three-day deliberations on key interest rates.