Rupee extends losses; down 9 paise

Continued capital outflows and cautious local stocks ahead of announcement of macroeconomic data weighed on the rupee

The rupee extended losses for the second straight day against the American currency by slipping 9 paise to close at 64.06 on sustained dollar demand due to firm US dollar in the overseas market.

Continued capital outflows and cautious local stocks ahead of announcement of macroeconomic data also weighed on the rupee, a forex dealer said.

The rupee started weak at 64.05 from its previous close of 63.97 at the Interbank Foreign Exchange (Forex) market. It moved in a range of 63.8950 to 64.1450 before concluding at 64.06, disclosing a loss of 9 paise or 0.14 per cent.

It dropped by 22 paise or 0.34 per cent in the previous two days.

BSE Sensex ended higher by 54.32 points or 0.21 per cent.

Meanwhile, foreign investors pulled out Rs 622.89 crore yesterday, according to provisional data.

The dollar index was trading up by 0.41 per cent in the late afternoon Asian trade today against its six major global rivals.

In the global market, the dollar traded higher against its rivals today, as worries surrounding Greece continued to build, though some investors were headed to the sidelines ahead of next week's US Federal Open Market Committee meeting.

Investors continue to watch headlines related to Greece after IMF halted bailout talks with the troubled nation on Thursday, citing a lack of progress over talks, while European leaders suggested negotiations were nearing an endgame.