The Indian rupee fell to an all-time low on Wednesday, pressured by a resumption of the dollar’s uptrend after data pointed to a resilient U.S. economy, reinforcing bets that the Federal Reserve will be in no hurry to reduce its interest rates.
The rupee fell to a record low of 85.8425 per US dollar, down from 85.7125 in the previous session and narrowly surpassing its all-time low of 85.84 hit on Monday.
The Dollar Index rose 0.3% after Tuesday data showed a strong U.S. labor market and accelerating activity in the country’s services sector, which also triggered a rise in Treasury yields American.
Asian currencies fell on Wednesday, with the Indonesian rupiah shedding 0.4% and leading the losses, while the Chinese offshore yuan fell to 7.34.
Sales of dollars by public banks, probably on behalf of the Reserve Bank of India, helped limit the rupee’s losses, according to traders.
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