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.

Explore why the USD/INR exchange rate has soared and why the Indian rupee has crashed to its lowest level on record

Rupee hit a record low, crossing 86 against the US dollar on Monday, following stronger-than-expected US job data. The report hinted that the Federal Reserve might not reduce interest rates significantly this year,

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,