Mumbai: The rupee declined 25 paise to hit a fresh 16-month low of 68.29 per dollar in early trade on Wednesday ahead of the minutes of US Federal Reserve's last policy meet scheduled to be released later in the day.
The greenback strengthened against most global currencies as investors await hints on the pace of further US monetary tightening amid sustained capital outflows, forex dealers said.
Weakness in the domestic stock market and demand for the US currency from importers also weighed on the rupee, they added.
On Tuesday, the rupee had gained 8 paise to close at 68.04 against the US dollar on fresh selling of the American currency by banks and exporters.
Meanwhile, the benchmark BSE Sensex fell by 30.57 points, 0.08 per cent, to in early trade on Wednesday.
