MUMBAI, Dec 19 Reuters The Indian rupee weakened past 85 per dollar on Thursday, hitting an alltime low as the Federal Reserve39;s scaling back of its rate cut projections for 2025 battered Asian currencies.

The rupee hit a low of 85.0850 against the U.S. dollar before closing at 85.07, down 0.1 on the day.

The Reserve Bank of India39;s RBI likely dollarselling intervention helped the rupee fare better than most of its Asian peers, which declined by as much as 1.2.

While dollar bids were broadbased, those from foreign banks were especially strong, suggesting likely outflows from Indian stocks, a trader at a private bank said.

India39;s benchmark equity indexes, the BSE Sensex and Nifty 50, ended lower by about 1 each, posting their fourth consecutive daily fall.

The Fed on Wednesday cut its benchmark interest rates by 25 basis points, but policymakers revised the number of rate cuts anticipated through 2025 down to two, from the four projected in September, and also raised their inflation forecasts.

The dollar index dipped below the 108 handle in Asia trading after rising to an over twoyear high earlier in the day. U.S. bond yields extended gains, with the 10year Treasury yield touching a peak of 4.54, the highest since May.

Central banks across emerging market countries scrambled to defend their struggling currencies as the Korean won dropped to its weakest level in 15 years, while the Indonesian rupiah hit a fourmonth low.

U.S. rates are expected to remain at…