Rupee weakens against dollar in early deals on Wednesday

Indian rupee weakened against dollar in early deals on Wednesday, as the greenback strengthened globally following a better-than-expected US consumer confidence data released overnight. Reports showed US consumer confidence climbed to 96.5 in December, up from November's upwardly revised 92.6, and beating expectations for an increase to 93.5. Further, increased month-end demand for the US currency from banks and importers, too weighed on domestic unit. However, Indian rupee has derived some support from falling oil prices and ensuing mitigation of India’s current account deficit. Meanwhile, RBI’s involvement in the Forex markets has provided overall stability.

The partially convertible currency is currently trading at 66.43, weaker by 4 paise from its previous close of 66.39 on Tuesday. The currency touched a high and low of 66.49 and 66.4050 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 66.37 and for Euro stood at 72.84 on December 29, 2015. While, the RBI’s reference rate for the Yen stood at 55.16 the reference rate for the Great Britain Pound (GBP) stood at 98.9112. The reference rates are based on 12 noon rates of a few select banks in Mumbai.