Indian rupee weakened against dollar in early deals on Wednesday due to sustained demand for the American unit from importers and banks amid a lower opening in the domestic equity market. Besides, foreign fund outflows and rising global crude oil prices amid dollar's gains against other currencies overseas too put pressure on the rupee. Rupee weakened further after data released in the US overnight raised bets of an early rate hike by the US Federal Reserve. Data released by the US Labour Department showed the country's consumer price index (CPI) rose 0.4 percent in April, the largest gain since February 2013. Another data showed that wage growth in April hit its pre-recession peak, growing at 3.4 percent, while cost of living also rose at the fastest pace in three years. To add fuel to the fire, the Atlanta Fed and San Francisco Fed chiefs suggested that two rate hikes may be warranted this year, while Dallas Fed chief Kaplan said a rate hike may come soon. On the global front, the yen firmed against the dollar on Wednesday after data showed Japan's economy unexpectedly expanded at the fastest pace in a year in the first quarter, but later gave up most of its gains on views that more stimulus is needed to keep growth on track.
The partially convertible currency is currently trading at 66.93, weaker by 6 paise from its previous close of 66.87 on Tuesday. The currency touched a high and low of 66.95 and 66.88 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 66.72 and for Euro stood at 75.49 on May 16, 2016. While the RBI’s reference rate for the Yen stood at 61.07, the reference rate for the Great Britain Pound (GBP) stood at 96.5953. The reference rates are based on 12 noon rates of a few select banks in Mumbai.
| Date | 1US$ | 1GBP |
| May 17, 2016 | 66.7233 | 96.5953 |
| May 16, 2016 | 66.8216 | 95.9625 |
(RBI-Reference Rate)
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