The rupee's fall below the psychologically important 86 level is likely "sooner rather than later," a trader at a foreign bank said.

The rupee declined 14 paise and touched the crucial 86.00mark (provisional) for the first time against the US dollar on Friday as it failed to resist pressure from a stronger American currency and huge outflow of foreign funds.

The Indian rupee weakened to its lifetime low on Thursday as the dollar strengthened on the back of expectations of slower-than-anticipated rate cuts by the Federal Reserve as well as uncertainty about the incoming U.