According to the latest figures released, the dollar index was trading at 81.375 after trading in the rage of 81.224 and 81.719.

The US dollar was trading at 98.51 yen after trading between 98.35 and 98.70 during the day. The euro was trading at $1.3372 after trading in the range of $1.3357 to $1.3394 range. The investors were concerned as the emerging markets recorded higher pressure due to indications that the US Fiscal Reserve will start rolling back its fiscal stimulus.

The US Federal Reserve has said that it will start rolling back its bonds buying programme as the US economy shows stable signs of recovery. In the US, 10-year Treasury yields fell 3 basis points to 2.79 per cent but the emerging market currencies particularly the Indonesian rupiah and Indian rupee and Mexican peso and Brazilian real saw added pressure.

Experts have said that the effects of rollback in a fiscal stimulus package will have an impact on various emerging economies as investors start withdrawing money from these markets. An index of emerging-market stocks fell 2.7 per cent during the previous week, which is its highest fall in two months, compared to a rise of 0.5 per cent in Standard & Poor's 500 Index.