MUMBAI, Jan 14 (Reuters) - The Indian rupee weakened to its lifetime low on Tuesday, pressured by strong dollar bids spurred by the maturity of positions in the non-deliverable forwards (NDF) market while likely intervention by the Reserve Bank of India capped losses.

The rupee declined to 86.5950 against the U.S. dollar, inching past its previous lifetime low of 86.5825 hit on Monday.

The dollar index was up 0.1% at 109.6, hovering close to a two-year peak, while Asian currencies were mostly stronger on the day.

Traders said the RBI likely sold dollars aggressively just prior to the opening of the local spot market, amid strong interbank dollar demand spurred by the maturation of positions in NDF market.

Traders expect the rupee to remain on a depreciation trajectory in the near-term because of persistent strength in the dollar and sustained foreign portfolio outflows.

Foreign investors have net sold more than $4 billion worth of local stocks and bonds over January so far.

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https://www.reuters.com/markets/currencies/rupee-slips-record-low-maturity-ndf-positions-spurs-dollar-bids-2025-01-14/