The Indian rupee fell below the 81 mark against the dollar for the first time on Friday, hitting a record low, while the 10-year bond yield jumped six basis points to a two-month high on the back of gains in US stocks.

The local currency opened at $81.03, hitting an all-time low of $81.13. The local currency was trading at $81.15 at 9:15 am, down 0.33% from its previous close of 80.87.

It was the seventh in eight sessions in which the currency fell more than 2.51%. So far this year, it is down about 8.48%. It is unclear whether the RBI intervened in the currency market.

On Thursday, the Federal Reserve surprised markets by raising interest rates by another 75 basis points and forecasting further sharp hikes in the coming months. In addition, the Fed’s updated economic forecasts showed slower GDP growth and higher inflation.

Following the announcement, analysts expect the Fed to hike rates by 75 basis points in November, 50 in December, and 25 in February 2023.

The 10-year bond yield was at 7.383%, its latest level on July 25 and up seven basis points from its previous close of 7.383%. US 10-year Treasury yields surged 18 basis points to 3.7% on Thursday, the highest in 10 years, as traders weighed the risk of a recession.

Asian currencies were mixed. Offshore China was down 0.3%, the yuan was down 0.27%, and the Taiwan dollar was down 0.1%. The Philippine peso was up 0.3%, the South Korean won was up 0.27%, and the Japanese yen was up 0.2%.

The US dollar index, which measures the greenback’s strength against major currencies, was at 111.408, up 0.05% from its previous close of 111.353.