Rupee weakens by 19 paise against US dollar, closes at 63.66

The rupee on Monday weakened against US dollar and closed at 63.66 on fresh demand for American currency from banks and importers on the back of a higher greenback in overseas markets.

The rupee on Monday weakened against US dollar and closed at 63.66 on fresh demand for American currency from banks and importers on the back of a higher greenback in overseas markets.

The rupee resumed lower at 63.53 as against last weekend's level of 63.47 at the Interbank Foreign Exchange and dropped further to 63.67 before closing at 3-week low of 63.66, showing a loss of 19 paise, or 0.30%.. It had last ended at 63.84 on June 29, 2015.

The rupee moved in a range of 63.67 and 63.53 during the day. The dollar index was trading higher by 0.06% against its major global rivals today. At the overseas market, the dollar hit a 3-month high against a basket of major currencies after solid US inflation and housing data supported expectations for the Federal Reserve to raise interest rates in coming months.

Oil prices declined in Asia today on a stronger dollar and concerns that a supply glut will worsen, following a landmark deal that will allow Iran to increase its crude exports. A strong US currency makes dollar-priced oil more expensive, denting demand and leading to lower prices.

Lingering concerns about a return of Iranian oil to the international market kept up the pressure on prices. Meanwhile, the benchmark 30-share Sensex fell by 43.19 points, or 0.15 %, to settle at 28,420.12.