New Delhi, June 24 -- The rupee weakened by 16 paise to open at 94.90 against the US dollar on Wednesday, June 24, as the greenback climbed to its highest level in more than a year amid growing expectations of a Federal Reserve rate hike and renewed safe-haven demand.

The domestic currency's recent recovery, supported by easing crude oil prices and measures announced by the Reserve Bank of India (RBI), has lost momentum this week as markets increasingly price in a Fed rate increase at its September policy meeting.

The US Federal Reserve adopted a notably hawkish stance at its latest policy meeting, prompting several analysts to revise their interest rate forecasts. Expectations have shifted from no further tightening to the possibility ...