Rupee at fresh low as Fed rate hike fears intensify, dollar strengthens

RBI not yet seen intervening heavily for the rupee, expected to step in around 83.40/$1 mark

The rupee weakened to a new low versus the US dollar on Thursday as some Federal Reserve officials reiterated the central bank’s commitment to aggressive rate hikes, leading to a jump in US bond yields and the greenback.

The Rupee touched a new low of 83.21 per US dollar as against its previous close of 83.02. Wednesday’s close marked the first time that the Indian currency breached the 83/$1 mark.

Dealers said that the Reserve Bank of India was not seen intervening heavily in the market through dollar sales, but the central bank is expected to do so around the