Indian rupee weakened against US dollar on Wednesday due to increased demand for the American currency from importers amid foreign fund outflows and rising retail inflation. Retail inflation jumped to a four-month high of 4.87 percent in May on costlier food items such as fruits, vegetables and cereals coupled with high fuel rates. While, industrial production expanded by 4.9 percent in April on improved performance by manufacturing and mining sectors as also a robust off take of capital goods. Further, dollar strengthening against other currencies overseas also weighed on the rupee sentiment. However, a higher opening in the domestic stock market limited the rupee's losses. On the global front, the dollar reached a three-week high against the yen and stood tall against the euro on Wednesday ahead of a Federal Reserve policy meeting that could give clues on how many more U.S. rate hikes there will be this year.
The partially convertible currency is currently trading at 67.57, weaker by 8 paise from its previous close of 67.49 on Tuesday. The currency touched a high and low of 67.6250 and 67.5475 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 67.45 and for Euro stood at 79.34 on June 12, 2018. While the RBI’s reference rate for the Yen stood at 61.10, the reference rate for the Great Britain Pound (GBP) stood at 90.06. The reference rates are based on 12 noon rates of a few select banks in Mumbai.
| Date | 1US$ | 1GBP |
| June 12, 2018 | 67.4571 | 90.0620 |
| June 11, 2018 | 67.3353 | 90.3707 |
(RBI-Reference Rate)
