Indian 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 per cent, at 29,756.15 at 1114 hours.