A strong greenback against major rivals overseas and unabated foreign fund outflows dented market sentiment, forex traders said.

Rupee registered an all time low with a 5 paise drop against the US dollar during early trade on Friday, squeezed by foreign fund outflows and a flat performance in domestic equities.Rupee opened at 84.

Rupee depreciated 4 paise to close at 84.09 (provisional) against US dollar on Wednesday, weighed down by weak domestic markets and month-end dollar demand from importers.   Forex traders said suspected intervention by the Reserve Bank of India (RBI) supported the local currency at lower levels.

At the interbank foreign exchange, the rupee opened at 84.26 against the greenback, registering a rise of 5 paise over its previous close. On Wednesday, the rupee depreciated 22 paise to close at an all-time low of 84.31 against the US dollar.

The rupee fell 2 paise to an all-time low of 84.13 against the US dollar in early trade on Tuesday, as persistent foreign fund outflows and a muted trend in domestic equities dented investor sentiments.

The Indian rupee hit a new all-time low against the US dollar due to foreign fund outflows and weak domestic equities. The US Fed's recent interest rate cut and potential future cuts are influencing the rupee's trajectory.

Forex traders say investors were also cautious ahead of the US Fed meeting outcome. Moreover, overnight gains in crude oil prices also weighed on the local unit

The Indian rupee declined to a lifetime low on Thursday in the wake of expectations that Donald Trump's victory is likely to boost the dollar in the coming months.