Rupee slips to all-time low

MUMBAI, Dec 23 (Reuters): The Indian rupee weakened to its lifetime low on Monday, pressured by weakness in the offshore Chinese yuan and strong dollar bids from importers, likely related to month-end payments, while state-run banks' dollar sales capped the decline.

The rupee declined to 85.12 against the US dollar, hitting an all-time for the fifth consecutive trading session and inchingpast the previous record low of 85.10 hit on Friday. The currency ended the session at 85.1175, down 0.1% on the day.

The offshore Chinese yuan declined to 7.30, down 0.2% on the day, while the dollar index rose 0.1% to 107.9.

Three traders cited mild dollar sales from state-run banks, likely on behalf of the Reserve Bank of India, helping limit the rupee's losses.

Meanwhile, dollar-rupee forward premiums rose on Monday with the 1-year implied yield up 2 basis points at 2.24%.