Indian rupee weakened against the US dollar in early trade on Friday due to increased demand for the American currency from importers amid weak domestic equity market. The fall in Index of Industrial Production (IIP) data and a surge in retail inflation also weighed on the rupee as it dented hopes of an interest rate cut by RBI anytime soon. Reports showed that Retail inflation, as measured by the consumer price index (CPI) for April accelerated to 5.39% as compared to 4.83% in March, while the industrial output, measured by index of industrial production (IIP) for March, decreased sharply to 0.1% versus 2% in February. On the global front, the dollar held to gains against the yen and euro on Friday, awaiting US data later in the day that could set the greenbacks tone.
The partially convertible currency is currently trading at 66.73, weaker by 11 paise from its previous close of 66.62 on Thursday. The currency touched a high and low of 66.79 and 66.71 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 66.59 and for Euro stood at 76.06 on May 12, 2016. While the RBI’s reference rate for the Yen stood at 61.16, the reference rate for the Great Britain Pound (GBP) stood at 96.1538. The reference rates are based on 12 noon rates of a few select banks in Mumbai.
| Date | 1US$ | 1GBP |
| May 12, 2016 | 66.5977 | 96.1538 |
| May 11, 2016 | 66.6958 | 96.4355 |
(RBI-Reference Rate)
