Rupee weakens more, loses 12 paise against dollar

The rupee today lost 12 paise to 66.83 as the dollar remained in the driver's seat on the growing buzz that the US interest rate is set to go up.

The Fed is meeting next week to take a call on this. A higher US rate means flight of investors from emerging markets in search of higher returns.

Apart from the increased demand for the American currency from importers and banks, its strength against other currencies overseas pulled down the rupee.

A lower opening in the domestic equity market did not help things.

Yesterday, the rupee had weakened 4 paise to 66.71 in a relatively muted trade on renewed demand for the greenback.

Meanwhile, the benchmark BSE Sensex fell 86.92 points, or 0.30 per cent, to 28,815.02 in early session today.