The rupee was trading weak at 64.68 against the US dollar on increased demand for the American currency from importers amid sustained foreign fund outflows.

According to forex dealers, domestic unit was also hit as the dollar gained strength against other currencies overseas as investors raised expectations of another US interest rate hike next month.

The domestic unit opened weak by 14 paise at 64.45 at the Interbank Foreign Exchange market today.

It hovered in a range of 64.68 and 64.44 before quoting at 64.68, down 37 paise at 3.50 pm local time.

Yesterday, the rupee had gained 7 paise at 64.31 on bouts of dollar selling by exporters and banks amid firm equities.

Meanwhile, the benchmark BSE Sensex ended up by 7.1 points or 0.02 per cent at 29,933.25.

In the overseas market, the euro pulled back from recent six-month highs on Tuesday, but remained well-supported as fading worries over political populism and signs of improving economic conditions in Europe bolstered investor confidence.

The euro fell to $1.0921 from $1.1024, its highest level in six months, hit in early Monday trade on relief after centrist Emmanuel Macron's victory in France's presidential election.