The rupee weakened to 65.07 as oil prices surged, raising concerns about the inflation outlook and hitting oil refiners such as Reliance Industries.

The benchmark 10-year bond yield rose as much as 5 basis points to 6.94 per cent, its highest since May 11.

Strengthening of dollar against other currencies overseas and a weak domestic equity market also dampened the rupee sentiment.

The domestic unit opened up by 7 paise at 64.61 against the previous close of 64.68 at the Interbank Foreign Exchange market today. It hovered in a range of 65.07 and 64.61 before quoting at 65.03, down 35 paise at 4.50 pm local time.

Meanwhile, the Sensex plummeted 360 points to close at 33,370.76 due to profit-booking and rising geopolitical concerns.