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%.

Oil prices were mixed after rallying Wednesday in reaction to a drop in US petroleum stockpiles, and despite President Joe Biden's decision to release 15 million barrels from US strategic reserves.

The bets on the US Fed to continue hiking rates aggressively got a boost after Minneapolis Fed President Neel Kashkari said underlying inflation pressures probably have not peaked yet.

The rise in yields and safe-haven demand catapulted the dollar index back to above the 113-levels.