Rupee stretches losses, down 24 paise against dollar

Sustained month-end demand for the American currency overseas amid foreign fund outflows affected the domestic currency

Extending weakness for the fourth straight day, the rupee fell further 24 paise to 66.22 against the US dollar in early trade on sustained month-end demand for the American currency overseas amid foreign fund outflows.

Forex dealers said dollar strengthening against other currencies overseas ahead of a closely watched speech later in the day by Federal Reserve chief Janet Yellen, during which markets hope she will provide more clarity on the bank's plans for an interest rate hike, also put pressure on the rupee.

Besides, a lower opening of the domestic equity market dragged down the Indian unit, they said.

The rupee had lost another 10 paise to settle at 65.98 per dollar yesterday on persistent demand for the American currency from banks and importers.

Meanwhile, the benchmark BSE Sensex was trading lower by 100.98 points, or 0.39%, at 25,722.01 in early deals.