The rupee on Tuesday weakened further by a steep 16 paise to close at 64.66 a dollar on sustained demand for the US currency from banks and importers. Fresh capital outflows against the backdrop of volatile global situation coupled with Fed rate hike fears also added to the pressure on the domestic currency.
Meanwhile, G-Secs recovered on fresh buying support from banks and corporates. Overnight call money rates ended lower at the money market due to lack of demand.