The rupee, though expected to hit Rs.82 per US dollar, the time has come surprisingly too early plunging to its lowest level on Wedensday as the dollar soared to fresh highs on Wednesday.

As the White House refused to intervene for a currency deal to weaken the dollar, amid hawkish remarks from Federal Reserve, the greenback is skyrocketing in forex value.

On Wednesday, Indian rupee fell 40 paise to an all-time low of 81.93 against the US dollar in early trade and remained hovering above 81.91 per dollar from the previous session's level of Rs.81.57.

rupees, dollars.
rupees, dollars.IANS

Experts said India's rigid tax policies make the nation's bonds difficult to be included in global indexes and roll in billions of dollars to ease the situation and withstand the rising US bond yields.

Indian investors are watching the outcome from the Reserve Bank of India's monetary policy meeting taking place for three days starting from today.

Asian Markets

Apart from India, Asian markets are also showing a weakness to the US dollar as the US 10-year Treasury bond yield reached 4 per cent for the first time since 2010.

"It's a combination of the spillover from the UK... where the gilt yields have gone ballistic. And that has spilled over into other DM bond markets, so there's a bit of a ricochet effect," Moh Siong Sim, a Currency Strategist at Bank of Singapore, told Reuters.

"And of course...this is against the backdrop of a very determined message by the Fed to do whatever it takes to bring inflation down," he said.

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In UK, the British Sterling lost about 1 per cent of its value, or $1.0634, reversing a modest 0.4 per cent gain from the previous session and continuing its steep decline since the beginning of this week.

As both the euro and the pound declined, and the offshore yuan plunged to its lowest level ever vs the dollar. The Australian dollar reached a low of $0.6389, its lowest level since May 2020. At $0.55645, the kiwi fell by almost 1 per cent, matching its lowest level from March 2020.