Rupee takes 21-paise hit after dollar clout grows

The rupee dropped a further 21 paise to 64.49 against the dollar today on growing safe haven appeal of the American currency after increased geo-political risks and higher chances of a tighter US monetary policy.

The rupee opened marginally lower at 64.30 against last Friday’s level of 64.28 here today. It moved in a range of 64.50 to 64.30 during morning deals before quoting at 64.49 at 1025 hours.

Meanwhile, the dollar index was trading steady at 101.23 against a basket of six currencies.

Overseas, the dollar started the week at a three-week high against the basket of currencies today after a key US Federal Reserve official reinforced the central bank’s commitment to interest rate hikes, going forward.

Meanwhile, the benchmark Sensex was trading higher by 49.54 points, or 0.17%, at 29,756.15 at 1114 hours.