Rupee sheds 12 paise against US dollar

The rupee fell 12 paise against the US dollar to trade at 65.78 in morning deals at the interbank forex market, on increased demand for the greenback from importers and banks amid soaring crude oil prices overseas.

Foreign capital outflows too weighed on the domestic unit.

However, weakness in the US dollar against select currencies and higher opening in domestic equity market capped the fall in the rupee, dealers said.

The rupee had slipped by 2 paise to settle at a seven-month low of 65.66 against the US currency on Wednesday due to sustained dollar demand.

On a net basis, foreign funds sold worth equities Rs 915.71 crore on Wednesday, provisional data showed.