Indian Rupee fell to a record low of 81.55 against the US dollar on Monday following a sharp upwards in dollar index and yields US treasury notes.
The 2-year US Treasury yield was its highest level at 4.2 per cent since October 12, 2007.
The Rupee fell for the fourth day in a row in the wake of risk-averse sentiments and unprecedented strength in the greenback following Federation tightening and recession worries.
The dollars rally rose sharply since last week as the US Federal Reserve increased rates by 75 basis points and forecast more large size rates to control inflation.
The Reserve Bank of India is selling dollars after the Rupee hit an all time low for the fourth day in a row, sources said. The apex bank is all set to raise rates later this week on September 30.
In the period ahead, the USD-INR would feature a bullish trend and may approach towards 82 as the strength in dollar continues. The USD-INR index is having resistance around 82 and support at 81.05, experts noted.
