Rupee declines 0.8%, closes at fresh all-time low of 83 vs US dollar

Analysts say RBI is allowing the depreciation amid wider CAD and higher US interest rates

The rupee saw a sharp decline on Wednesday, breaching the 83 per dollar mark for the first time, amid hefty dollar demand from fuel companies and because the Reserve Bank of India (RBI) intervened less aggressively, dealers said.

A strengthening in the dollar and higher US bond yields added to the rupee’s weakness.

The domestic currency closed at 83.02 per US dollar, which was a decline of 0.8 per cent compared with the previous close of 82.36 per dollar. Before this, the rupee’s record closing low was 82.36 per dollar, while the all-time intraday low was 82.72 per dollar. The Indian currency