Mumbai:The rupee was trading down by 7 paise at 65.14 against the US currency in late morning deals following a sustained bout of dollar demand from banks and importers amid firm foreign fund outflows.

Earlier, the rupee opened lower by 7 paise at 65.14 per dollar as against yesterday's closing level of 65.07 per dollar at the Interbank Forex Market (FOREX). The Indian unit hovered between 65.15 and 65.09 per dollar during morning deals, it was quoting at 65.14 per dollar at 1025 hrs. At overseas, the dollar traded within sight of a three- month high against the yen early today, underpinned by reports of Republican senators' support for John Taylor to become the next Federal Reserve chief. Against a basket of six major currencies, the dollar stood at 93.98 up 0.04 per cent.

The BSE Sensex trading higher by 240.07 points, or 0.74 per cent, at 32,847.41 at 1025 hrs.