Rupee weakens to 64.96 on heavy dollar demand

The rupee depreciated by 17 paise to 64.96 against the US dollar due to increased demand for the US currency from importers amid sustained foreign fund outflows. However, a weak dollar overseas helped the rupee limit its losses, dealers said.

The domestic unit opened weak by 4 paise at 64.83 at the interbank foreign exchange market today. It hovered in a range of 64.96 and 64.76 before quoting at 64.86, down 7 paise at 4.45 pm local time.

Asian shares extended their recovery on Tuesday, hitting a three-week high as US borrowing costs eased ahead of Federal Reserve Chairman Jerome Powell's highly-anticipated first congressional testimony later in the day.

Yesterday, the rupee had lost 6 paise to end at 64.79 against the US currency due to fag-end dollar demand from importers and corporates.

Meanwhile, the benchmark BSE index closed down by 99.36 points or 0.29 per cent at 34,346.39. The broader NSE index ended lower by 28.3 points or 0.27 per cent at 10,554.3.