Mumbai: The rupee declined by 5 paise to 64.57 against the US dollar at the interbank foreign exchange today due to higher demand for the American currency from importers and banks amid sustained foreign fund outflows.   

The rupee had lost 14 paise to end at 64.52 against the US dollar yesterday after RBI decided to keep the key policy rates unchanged and raised the inflation forecast.   

Dealers said apart from increased demand for the dollar from importers and banks, sustained outflows by foreign funds put pressure on the rupee. Meanwhile, the benchmark Sensex recovered 114.25 points, or 0.35 percent, to 32,711.43 in the early part of the session. PTI