MUMBAI, Oct 11 Reuters The Indian rupee fell below 84perdollar for the first time on Friday, pressured by concerns over the recent jump in oil prices and the exodus of foreign money from the domestic equity market.

The rupee dropped to 84.07 and was last quoted at 84.0425 as of 1220 p.m. IST. The currency39;s decline past the 84 handle is significant as the Reserve Bank of India had been defending that level for over two months.

The currency had recovered to around 83.50 a little over two weeks ago, but its nearterm outlook has worsened as the Middle East conflict has pushed up oil prices, foreigners have been pulling money out of equities and as hopes of another large U.S. rate cut have diminished.

Overseas investors have turned heavy sellers of Indian equities over the last nine sessions, while Brent crude oil futures are up more than 10 in October so far.

Repeated interventions by the RBI over the last two months had helped the rupee hold above the 84 level. The RBI on Monday informally instructed banks to avoid heavy bets against the rupee.

The currency has also been on the defensive due to India39;s shrinking balance of payments surplus amid a rise in merchandise trade deficit.

A pick up in gold imports alongside a slowdown in exports drove India39;s merchandise trade deficit to 10month high of almost 23 billion in August.

The trade gap also contributed to a widening in the country39;s current account deficit to 9.7 billion or 1.1 of GDP in the AprilJune…