Rupee weakens against dollar in early deals on Wednesday

Indian rupee weakened against dollar in early deals on Wednesday due to increased demand for the American unit from importers and banks amid a lower opening in the domestic equity market. Besides, sustained capital outflows by foreign funds also weighed on the domestic unit, but dollar's weakness against some currencies overseas limited the rupee's fall. On the global front, the dollar nursed losses around 3-1/2-month lows on Wednesday, pressured by fears of a global economic slowdown following recent falls in oil prices and growing concerns about the health of European banks. Traders are cautious ahead of US Federal Reserve Chair Janet Yellen's testimony to Congress later in the day, where she is expected to defend the Fed's first rate hike in a decade and likely insist that further rises remain on track.

The partially convertible currency is currently trading at 67.94, weaker by 4 paise from its previous close of 67.90 on Tuesday. The currency touched a high and low of 67.9850 and 67.86 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 68.16 and for Euro stood at 76.38 on February 09, 2016. While the RBI’s reference rate for the Yen stood at 59.39, the reference rate for the Great Britain Pound (GBP) stood at 98.2696. The reference rates are based on 12 noon rates of a few select banks in Mumbai.