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.

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.

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.

On the domestic equity market front, Sensex declined 426.85 points, or 0.53%, to 79,942.18 points. The Nifty fell 126.00 points, or 0.51%, to 24,340.85 points

Forex traders said investors were cautious ahead of the US presidential election. Markets are bracing for potential volatility over the coming days

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.

Declining for the third straight session, the rupee dropped 5 paise to hit a new lifetime low of 84.37 (provisional) against the US dollar on Friday, weighed down by persistent foreign fund outflows and a muted trend in domestic equities.