Rupee loses 28 paise against dollar in morning trade

The rupee weakened 28 paise to trade at 64.03 against the dollar in early trade today at the Interbank Foreign Exchange on capital outflows by foreign funds amid strengthening of the American currency against others overseas.

Furthermore, increased demand for dollar from importers and banks weighed on the local currency, forex dealers said.

The dollar was trading near 13-year highs against the yen overseas after strong US employment data bolstered hopes for an early interest rate hike by the Federal Reserve.

However, they said, a higher opening in the domestic equity market capped the rupee's fall.

The rupee had closed 25 paise higher at 63.75 against the US dollar in in the previous session on Friday on fresh selling of the greenback by banks and exporters in view of solid foreign capital inflows.

Meanwhile, the benchmark BSE Sensex recovered 58.57 points, or 0.21%, to 26,827.06 in early trade.