Rupee falls 10 paise; slides for 3rd straight day

Sustained capital outflows weighed on the rupee sentiment, brokers said

Continuing its fall for the third straight day, rupee slipped 10 paise against the American unit to 64.16 on persistent dollar demand from banks and importers on the back of strong greenback in the global market.

Sustained capital outflows also weighed on the rupee sentiment, brokers said.

However, rise in the equity market restricted rupee's fall to some extent, a forex dealer said. Sensex rose by 161.25 points or 0.61 per cent on account of strong factory output, steady inflation and above normal monsoon till now.

The domestic unit opened lower at 64.15 from its previous close of 64.06 at the Interbank Foreign Exchange (Forex) market and hovered in a range of 63.9925 and 64.1750 before finishing at 64.16 per dollar, a loss of 10 paise or 0.16 per scent.

The rupee has shed 32 paise or 0.50 per cent in last three sessions.

Globally, dollar was higher against the major rivals in early trade ahead of the key Federal Open Market Committee meet amid deadlock between Greece and its creditors broke up in failure over the weekend.

Meanwhile, foreign investors pulled out Rs 670.96 crore last Friday, according to provisional data.

Crude Oil prices fell in Asia today as dealers fretted over a collapse in Greece's debt talks and a possible return of Iranian supplies disrupted by international sanctions, analysts said.

The US benchmark West Texas Intermediate for July delivery fell 20 cents to USD 59.76 while Brent crude for July eased 37 cents to USD 63.50 in mid-morning trade.