However, the Indian currency avoids sharp losses on central bank's intervention

Businesses will not be able to use the Indian rupee for trading with India as the Bangladesh Bank has not enlisted the currency for the settlement of bills for exports and imports.

Top lender State Bank of India (SBI.NS) has asked exporters to avoid settling deals with Bangladesh in the dollar and other major currencies as it looks to curb exposure to Dhaka's falling reserves, according to an internal document and a source.

The Indian rupee notched its biggest one-day gain in a year on Tuesday against a wobbly dollar as local equities saw a rush of foreign investor inflows.

The Indian rupee weakened further on Wednesday, touching record lows against the U.S. dollar as losses in domestic shares and other Asian currencies weighed on sentiment.

The Indian rupee fell to a new all-time low early today (May 9, 2022), trading beyond 77.40 per US dollar, driven by investors’ need for safety as China’s lockdowns, war on the outskirts of Europe, and fears of increased interest rates sent a fearful jolt through markets, according to NDTV.