The Indian rupee declined to its weakest level on record on Friday as a resurgent dollar and sustained portfolio outflows pressured the currency, while heightened geopolitical risks also dampened risk appetite.

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 hit an all-time low on Friday as the dollar's post-U.S. election rally gathered steam again, while foreign investors' continued exodus from domestic equities and bonds also weighed on the local currency.

The Indian rupee hit a record low of 84.50 against the US dollar, pressured by geopolitical tensions, a sell-off in domestic equity markets, and rising crude oil prices. Foreign institutional investors continued selling,