Rupee breaches the 89 per USD mark, sinks to an all time low

The Rupee on Friday saw its biggest single day drop in recent times, breaching the 89 to the Dollar mark to close at an all time low.

The Indian currency (INR) was weighed down by worsening trade deficit, lack of visibility on progress in talks on US’ steep import tariffs on Indian goods, aggressive short-covering getting triggered after INR breached the 88.80 level, and the Dollar gaining strength on expectations the US Fed may not cut interest rate at its December meeting.

The Indian currency closed at a record low of 89.49 per US Dollar (USD), down 79 paise, over the previous close of 88.70.

Intraday, the Rupee saw a huge 107 paise movement, with the high/low being 88.60/ 89.67.

India’s trade deficit (imports are more than exports) widened to $41.68 billion in October from $32.15 bi