The Indian rupee declined to a lifetime low on Tuesday, pressured by the U.S. dollar's rally against its major peers and on concerns over the Asian country's slowing growth rate. The rupee dipped to a record low of 84.

Rupee hits all-time low against US dollar due to Trump's tariff threat, geopolitical tensions, and foreign outflows.

On Monday, the rupee depreciated 12 paise to close at an all-time low of 84.72 against the dollar. Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading lower by 0.18 per cent at 106.25.

The Indian rupee hit an all-time low on Tuesday weighed down by a broadly stronger dollar and a slump in the offshore Chinese yuan to a one-year low, while persistently strong dollar bids in the non-deliverable forwards market also exerted pressure.

The weakness in the Indian rupee is expected to persist in the near term, with the possibility of breaching the 85 per dollar level.

The Indian rupee declined to its weakest level on record on Monday, hurt by concerns about economic growth slowing to its lowest in seven quarters alongside strong dollar bids in the non-deliverable forwards market.