The Indian rupee dropped past 86 per U.S. dollar for the first time ever on Monday following a blowout U.S. jobs report that compounded the pressure from weak inflows and higher hedging activity.

Currency’s decline and its implications for inflation add to doubts about health of world’s fastest-growing major economy

The Indian rupee opened at a record low of 86.20 against the US dollar, depreciating five paise from its previous close. The decline comes after a three-day streak of record lows for the rupee, which closed at 85.97 per dollar on Friday.

The Indian rupee is likely to fall further this week, weakening past a psychologically important level, in the wake of an ongoing rally in the U.S. dollar on upbeat economic data, while bond yields could rise,