MUMBAI, Dec 27 Reuters The Indian rupee weakened to an alltime low on Friday, hurt by persistently strong dollar demand in the nondeliverable forwards NDF market, while likely intervention by the Reserve Bank of India RBI capped the currency39;s losses.

The rupee declined to 85.3950 to the dollar, eclipsing its previous alltime low of 85.2825 hit on Thursday. The currency was last quoted at 85.39 as of 0940 a.m. IST.

The local currency has hit record lows in every trading session this week, pressured by broad strength in the dollar alongside a bearish bias on the local currency amid the widening of India39;s trade deficit and concerns about slowing growth.

The pressure on the currency is likely to persist, driven by monthend dollar demand from local oil companies. Thus, we anticipate the USDINR pair to trade within the range of 85 to 85.50 in the near term, said Amit Pabari, managing director at FX advisory firm CR Forex.

Staterun banks were spotted offering dollars, most likely on behalf of the RBI, traders said, which helped limit the local currency39;s losses.

The dollar index was a tad higher at 108.1, while Asian currencies were down between 0.1 and 1. The greenback has gained over 2 so far this month and is on course for its third monthly gain on the trot.

Expectations about incoming U.S. President Donald Trump39;s policies have boosted the dollar and U.S. Treasury yields, which have hurt emerging market currencies across the board.

However, the RBI39;s…