MUMBAI, Nov 28 Reuters The Indian rupee weakened on Thursday to close just shy of its alltime low, pressured by foreign portfolio outflows and monthend importer demand for dollars, while intervention by the central bank helped limit losses.

The rupee closed at 84.4850 against the U.S. dollar, down from its close of 84.4525 in the previous session.

The currency had weakened to its alltime low of 84.5075 last week.

Benchmark Indian equity indexes, the BSE Sensex and Nifty 50, closed down by about 1.5 each, dragged down by losses in stocks of heavyweight IT firms.

Foreign banks were spotted bidding for dollars while staterun banks were present on offer pretty much through the session, most likely on behalf of the Reserve Bank of India, a trader at a foreign bank said.

The central bank has frequently intervened in recent sessions to support the rupee near the psychologically important support level of 84.50.

The dollar index rose about to 106.3 after slumping 0.7 on Wednesday, its largest singleday fall since lateAugust.

A stronger euro following hawkish comments from a European Central Bank policymaker and monthend rebalancing flows likely weighed on the dollar, ING Bank said in a note.

Elevated US interest rates, European political developments and the threat of more tariff social media posts coming through should keep the dollar bid on dips, the note said.

Meanwhile, investors have added to short positions on most emerging Asian currencies, including the rupee,…