The Indian rupee is expected to stay on the back foot on Friday, pressured by a rebound in the dollar amid uncertainty about the pace of rate cuts in the United States, while persistent portfolio outflows also remain a worry for the local currency.

The rupee touched an intraday record low of 84.507 to a dollar, but ended stronger at 84.445/$1, despite the US dollar index strengthening to a two-year high, as the Reserve Bank of India (RBI) likely sold the greenback to cap further depreciation in the currency,

The rupee weakened below the psychologically important 84.50-per-dollar level to hit an all-time low on Friday as the greenback's post-U.S. election rally revived and as foreign investors continued to pull out of domestic equities and bonds.

MUMBAI: The rupee sank to an all-time low of 84.50 against US dollar on Thursday, declining 0.1% during the session and 1.5% this year. The currency's weakness was primarily driven by foreign fund outflows from Indian markets and heightened risk aversion linked to escalating geopolitical tensions,