The Indian rupee declined by 1 paisa to reach a new all-time low of 84.92 against the US dollar in early trade on Tuesday, pressured by foreign fund outflows and a sluggish performance in domestic equities. Forex traders suggest that the rupee is likely to remain under pressure due to strong dollar demand from importers and foreign banks.

At the interbank foreign exchange market, the rupee opened at 84.89 against the greenback, and then fell further to 84.92, marking a 1 paisa drop from its previous close. On Monday, the rupee had depreciated by 11 paise, closing at a historic low of 84.91 against the US dollar.