Rupee closes 10 paise lower at 66.46

Extending losses for the second consecutive day, the rupee slipped by 10 paise to close at 66.46 against the US dollar on persistent demand for the American currency from banks and importers on the back of a higher greenback in overseas markets.

Besides, fresh foreign capital outflows affected the market sentiments.

The domestic unit resumed lower at 66.40 as against yesterday's closing of 66.36 at the Interbank Foreign Exchange (Forex) market.

It hovered in a range of 66.3450 to 66.5075 during the day before ending at 66.46, showing a loss of 10 paise, or 0.15 per cent.

It has dropped by 13 paise, or 0.20 per cent, in two days.

The dollar index was higher by 0.21 per cent against a basket of six currencies.

In international markets, the US dollar firmed up against its major rivals, buoyed by a rise in US yields after upbeat consumer spending data kept alive hopes that the US Federal Reserve would raise interest rates at its two-day meeting.

Meanwhile, the benchmark BSE Sensex rose by 258.04 points, or one per cent, to settle at 25,963.97 today.