The rupee held near its all-time low on Friday as suspected Reserve Bank of India intervention kept the currency from breaching its record.

The rupee traded at 96.78 to the dollar, close to its lifetime low of 96.96 hit in May. State-run banks were spotted selling dollars early in the session, most likely on behalf of the RBI, traders said.

The currency has been under sustained pressure from elevated crude oil prices, foreign portfolio outflows and high US Treasury yields. The slide sharpened after the RBI's October 7 policy decision, when it raised the repo rate by 25 basis points to 5.5 per cent and shifted its stance to "calibrated tightening".

"I think it is only a matter of time before the rupee breaks 97, and possibly falls a lot further," one currency trader said. "I would not be surprised if we see a new low today itself."

A pullback in the dollar and US yields on Friday offered brief relief. But with Brent crude near $103 a barrel, traders expect the RBI to keep defending the record low in the sessions ahead.