Rupee falls to record low of 83.34 against dollar, notches weekly decline

Indian rupee fell to a record low on Friday as a rebound in US Treasury yields pressured Asian currencies.

rupee closed at 83.34 against US dollar, a record closing low, and down 0.07 per cent versus its close of 83.28 on Thursday. On week, local unit shed 0.2 per cent.

rupee hit its record low of 83.42 during session after breaching its previous all-time low of 83.2950 which was hit on vember 1.

Reserve Bank of India (RBI) likely intervened to limit rupee's depreciation, four trers said.

While rupee has broken its long-enduring support of 83.30, a clearer picture will only emerge closer to Wednesday or Thursday, said Abhilash Koikkara, he of forex and rates at Nuvama Professional Clients Group.

If rupee sustains around 83.40 levels next week, it may settle into a weaker range, Koikarra ded.

However, trers said rupee is unlikely to see sharp declines as central bank is expected to step in intermittently to curtail fall.

pressure on currency also heightened on Friday due to an out of interbank order matching system, trers said.

Most Asian currencies weakened with Korean won leing losses down by over 0.5 per cent.

dollar index held just shy of 106 handle while 10-year US Treasury yield last quoted at 4.64 per cent, well above week's low of 4.48 per cent.

US yields rebounded following hawkish commentary from US Federal Reserve officials, including Chair Jerome Powell, who signalled that Fed may tighten rates furr if conditions warrant it.

rupee will keep weakening, but slide is likely to be grual as RBI won't allow excess volatility, a foreign exchange trer at a private bank said.

Investors w await October inflation data for US and India due next week.