MUMBAI (Reuters) - The Indian rupee hit a lifetime low in early trading on Thursday, pressured by a rise in U.S. bond yields and strong dollar bids in the non-deliverable forwards (NDF) market while the central bank likely stepped in to cap losses, traders said.
The rupee declined to 85.93 per U.S. dollar, weakening past its previous record low of 85.8575 hit in the previous session.
State-run banks were spotted offering dollars, most likely on behalf of the Reserve Bank of India, which helped limit the rupee's losses, four traders told Reuters.
The RBI is "active as usual", which should help the rupee stay above the 86 handle in the near-term, a trader at a private bank said.
The dollar index was hovering just shy of the 109 handle after climbing 0.3% on Wednesday while Asian currencies were mixed.
The 10-year U.S. Treasury yield hit a peak of 4.73% on Wednesday, its highest since April 2024, before edging lower in Asia trading.
(Reporting by Jaspreet Kalra; Editing by Mrigank Dhaniwala)