MUMBAI, Dec 6 Reuters The Indian rupee fell below 82 to the U.S. currency for the first time in over a month on Tuesday, likely due to stop losses and dividend paymentrelated outflows.

The rupee was at 82.2550 to the dollar at 1058 a.m. IST, down from 81.79 in the previous session. The local unit dropped to a low of 82.34, a level last seen on Nov. 4.

USDINR short squeeze at 82.0082.10, a level that most traders thought was safe, is helping the dollar, a trader who did not wish to be identified said.

Talk of a mining company39;s large dividend paymentrelated dollar outflow was adding to the USDINR upside momentum, they added.

The rupee and other Asian currencies were pressured by the upbeat U.S. services data that raised fears of the Federal Reserve pushing rates higher than what is currently priced in.

U.S. services industry activity unexpectedly picked up in November. The Institute for Supply Management ISM said on Monday its nonmanufacturing PMI Purchasing Managers39; Index increased to 56.5 last month from 54.4 in October.

Futures currently show that traders expect the Fed rate to peak at around 5 midnext year. That could be revisited if U.S. data continues to surprise positively.

Meanwhile, USDINR forward premiums fell more to slip to their lowest level in more than a decade. The 1year implied yield dropped to near 1.70, helped by the overnight increase in Treasury yields following the U.S. services data.

Focus is now on the Reserve Bank of India39;s policy…