MUMBAI, Sept 6 (Reuters) - The Indian rupee weakened to a two-week low on Wednesday on concerns over rising U.S. Treasury yields and oil prices that are now at the highest since November 2022.
The rupee was last quoted at 83.0775 against the U.S. dollar, down from its close of 83.04 in the previous session but holding above its August low of 83.16.
USD/INR is expected to stay in demand through the day, with crude prices and the dollar index not offering any respite, a foreign exchange trader at a foreign bank said.
With USD/INR managing to hold above 83, interbank is on the watch for any Reserve Bank of India (RBI) intervention, another trader said.
The rupee falling below the 83 level "isn't new" and the key remains the RBI's reaction, said Amit Pabari, managing director at fx advisory firm CR Forex.
U.S. yields jumped on Tuesday after a Federal Reserve official's comments reinforced expectations that policy rates could stay elevated for a while. The dollar index reached a high of 104.90, its best level in nearly six months.
Brent crude oil futures rallied to above $90 a barrel after Saudi Arabia and Russia extended voluntary supply cuts. Oil prices are up 1.7% so far this week, adding to last week's 4.8% surge.
The Chinese yuan was under pressure, recording a low of 7.3248. Chinese state banks were seen mopping up yuan liquidity in the offshore foreign exchange market and actively selling U.S. dollars onshore to control the depreciation. (Reporting by Jaspreet Kalra; Editing by Savio D'Souza)
