The rupee collapsed to a fresh low of 73.81 as the dollar reached a 11-month high against the yen and stood tall against other peers on upbeat US data and comments from Federal Reserve Chairman Jerome Powell that were seen as hawkish.

The rupee opened weak at 73.72 against the previous close of 73.34. It hovered in a range of 73.81 and 73.40 before quoting at 73.58, down 24 paise at 5 pm local time.

The dollar stretched an overnight rally to touch 114.55 yen, its highest since early November 2017. A rise above 114.735 yen would take the US currency to its highest level since mid-March 2017.

The benchmark 10-year bond yield hit 8.2 per cent in early trade against the previous close of 8.11 per cent. According to traders, RBI might have sold dollars via state-run banks around 73.80 to prevent the further slide in rupee.

Consistent dollar demand from importers, mainly oil refiners, following higher crude oil prices, also kept the rupee under pressure. Brent crude breached $86 per barrel level, near its four-year high, on Wednesday.

Meanwhile, state-owned oil marketing companies have been allowed to raise $10 billion from overseas market to meet their working capital needs.