Reuters Market Eye - The rupee extends losses to 56.64/65 versus its close of 56.4950/5050 tracking weak domestic equity markets.
The Sensex is down 0.8 percent.
Traders, however, expect exporters to step in to sell the greenback around 56.70 levels.
The pair is seen holding in the 56.60 to 56.75 range during the rest of the session.
The dollar's weakness against major currencies is also seen limiting a sharp rise in the pair. The index of the dollar against six major currencies is down 0.3 percent.
(Reporting by Swati Bhat)