Rupee trading weak at 64.09 on capital outflows

Mumbai, India (BBN)-The rupee was trading weak by 34 paise at 64.09 on capital outflows by foreign funds amid strengthening of the American currency against others overseas.

Furthermore, increased demand for dollar from importers and banks weighed on the local currency, forex dealers said, reports thew Press Trust of India.

The rupee opened weak by 28 paise at 64.03 against the dollar in early trade at the Interbank Foreign Exchange market. It further fell to 64.15 before being quoted at 64.09 at 11.55 am local time.

The local currency hovered in the range of 64.00 and 64.15 in the morning trade.

The dollar was trading near 13-year high against the yen overseas after strong US employment data bolstered hopes for an early interest rate hike by the Federal Reserve.

The rupee had closed 25 paise higher at 63.75 against the US dollar in the previous session on Friday on fresh selling of the greenback by banks and exporters in view of solid foreign capital inflows.

Meanwhile, the benchmark BSE Sensex shed 162.49 points or 0.61 per cent at 26,606 on weak global cues and as investors turned wary ahead of IIP and inflation data to be released this week.