MUMBAI: The Indian rupee weakened on Tuesday, tracking Asian peers, while elevated US Treasury yields also weighed on the local unit, which neared key support levels.

The rupee was at 83.2250 against the US dollar as of 10:55 a.m. IST, compared with 83.1450 in the previous session.

The 10-year US Treasury yield rose to 4.56% in Asian hours, its highest level since October 2007.

The dollar index was hovering close to its highest level since November 2022 and was last quoted at 106.05.

“Looking at the dollar index, the rupee would have gone beyond 83.30,” a foreign exchange trader at a state-run bank said.

The rupee’s lowest level on record of 83.29 was hit in October 2022.

US Treasury yields rose following some hawkish commentary from Federal Reserve officials and as markets digest the central bank’s higher-for-longer rates trajectory.

There is a limited desire to sell or buy dollars at this price, a second foreign exchange trader at a state-run bank said. Concerns about an intervention by the Reserve Bank of India could also be keeping some participants on the sidelines, he added.

The rupee’s Asian peers were mostly lower, with the Korean won leading losses down by almost 1%. Brent crude oil futures were lower at $92.89 due to concerns that fuel demand could be subdued by major central banks holding interest rates higher.

“Speculative longs (on USD/INR) are dry around this zone,” said Arnob Biswas, head of foreign exchange research at SMC Global Securities, referring to limited appetite to push the rupee lower.

Equity-related outflows have also pressured the rupee in September as foreign investors have sold equities worth $1.3 billion so far and are close to snapping a six-month buying streak.