The Indian rupee fell to its lifetime closing low on Thursday and was the worst performer among key Asian peers in November which have rallied amid a slump in US yields and the greenback.

Likely intervention from the Reserve Bank of India limited further downside for the local unit on Thursday, five traders said.

The rupee ended at 83.3950 against the US dollar, lower by 0.08 per cent, compared with its previous close at 83.3250. The local unit posted a slight monthly loss of 0.1 per cent.

The central bank "mildly" sold dollars, while a large foreign bank was seen on the buying side, likely on behalf of custodial clients, a foreign exchange trader at a private bank said.

The dollar index was last quoted higher at 103.14 but appears on course to register a monthly decline of more than 3 per cent, its sharpest monthly fall in a year.

Most Asian currencies jumped on the back of lower US yields and a weaker dollar in November, but the rupee stayed on the sidelines as positive global cues were eroded by strong local demand for the greenback, traders said.

"The room for a dollar rebound has shrunk based on pure rate fundamentals," ING Bank stated in a note.

US yields have slumped in November with the 10-year yield falling nearly 60 basis points amid investors' bets that the Fed could begin easing rates starting May next year.

The rupee has been drifting lower in a tight range and that is likely to continue for now, said Anindya Banerjee, head of foreign exchange research at Kotak Securities.

Investors now await US inflation data for October and India's GDP figures for the third quarter, both due later in the day.