The Indian rupee weakened to its lowest level on record on Friday before ending higher as the central bank's intervention supported the currency in the face of the U.S. dollar jumping to a two-year high.

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 fell to a record low, closing 8 paise down at 84.50 per dollar on Thursday. The depreciation was attributed to a combination of domestic and global factors, including a massive sell-off in Indian equity markets and a surge in crude oil prices.

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.

The Indian rupee fell to 84.50 against the US dollar due to rising dollar strength, FPI selling, and geopolitical tensions. The dollar index surged 3.10% this month, while FPIs withdrew nearly ₹40,000 crore from Indian equities,

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,

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.

Global investors search for a safe haven amid rising geopolitical uncertainty in Ukraine. The domestic sell-off was fueled by weak corporate earnings.