Indian rupee weakened against dollar in early deals on Wednesday on increased demand for the American currency from importers. Rupee weakened further on weak domestic equity market due to worries that future foreign equity inflows would be hit after the country said it will start imposing capital gains taxes on investments coming from Mauritius starting next year, after the two countries agreed to amend a three-decade old treaty that brought in billions of dollars in investment but was suspected of abetting tax evasion. On the global front, the dollar dipped on Wednesday as investors locked in gains following its steep rise against the yen after intervention warnings from Japanese officials.
The partially convertible currency is currently trading at 66.69, weaker by 2 paise from its previous close of 66.67 on Tuesday. The currency touched a high and low of 66.84 and 66.6875 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 66.72 and for Euro stood at 75.95 on May 10, 2016. While the RBI’s reference rate for the Yen stood at 61.35, the reference rate for the Great Britain Pound (GBP) stood at 96.1069. The reference rates are based on 12 noon rates of a few select banks in Mumbai.
| Date | 1US$ | 1GBP |
| May 10, 2016 | 66.7224 | 96.1069 |
| May 09, 2016 | 66.4379 | 95.7702 |
(RBI-Reference Rate)
