Rupee hits fresh low vs US dollar, may slide to ‘84 levels soon’

The Indian rupee fell to 83.06 in early trade today  as the surge in Treasury yields and the dollar index fuelled a broader decline in Asian currencies and equity markets. The rupee had hit a record low of 83.02 in the previous session. Asian equities tumbled today, tracking a sell-off on Wall Street, while the dollar regained its strength as surging inflation and interest rate hikes fears returned to the fore.

The selloff in U.S. Treasuries resumed on Wednesday, pushing near-maturity and longer-maturity Treasury yields to fresh multi-year highs. Yields had spiked despite a weak U.S. housing report.

The yield on the 10-year U.S. Treasury note touched a fresh 14-year high, brushing off a weak housing report. US 10-year yields were up at 4.139%.

Globally, equities are again under pressure after a fresh jump in US yields and another round of escalation over the Russia-Ukraine war. On the oil front, Joe Biden’s battle against higher oil prices continues after his administration announced the release of another 15 million barrels of oil from the Strategic Petroleum Reserve (SPR) extending the release through December," the forex advisory firm added.