Rupee hits new low as depreciation continues

The downside in the Indian rupee, which has been steadily depreciating over the past months, is unlikely to abate soon as it hit yet another record low on Monday.

- TBG NETWORK

At the time of filing this report, the rupee was trading at an all-time low of 89.713 per US dollar.

The Indian currency has weakened by about 4 per cent this year so far.

According to experts, the strength in the US dollar and the delay in the India-US BTA first tranche are also weighing on the rupee.

Rupee depreciated by 0.8 per cent in November alone, according to a Bank of Baroda report, penned by economist Aditi Gupta.

"The depreciation in INR was more pronounced if we consider the fact that the dollar weakened in the same period. Strong demand from importers, low foreign inflows, uncertainty over US trade deal and an elevated trade deficit, weighed on the domestic currency," Economist Aditi Gupta noted in the report released on Monday.