Rupee extends fall as banks, importers buy dollars

Capital outflows also weigh on rupee

The rupee dropped 37 paise to 64.12 against the American currency in late morning trade on dollar demand from banks and importers on the back of higher dollar in the overseas market.

Foreign capital outflows also affected rupee, a forex dealer said.

In the overseas market, the dollar soared against most of its rivals on last Friday, hitting a 13-year high against the Japanese yen, after strong US jobs report indicated the economy bounced back strongly in May, sparking a surge in treasury yields.

The rupee resumed lower at 64.05 per dollar as against the last weekend's level of 63.75 per dollar at the Interbank Foreign Exchange (Forex) Market and dropped further to 64.1575 before quoting at 64.12 per dollar at 1100 hrs, showing a loss of 37 paise or 0.58%.

The local currency moved in a range of 64.00 per dollar and 64.1575 per dollar during the morning trade.

Meanwhile, the benchmark BSE Sensex washed out initial gains and was quoted lower by 155 points or 0.57% in late morning trade.