The Indian rupee made a new record low of 89.78 against the US Dollar on Monday, December 1. This, despite a very strong GDP print reported on Friday for the second quarter.

Dealing rooms that CNBC-TV18 spoke to have attributed no specific reason to this depreciation. The outflows for the US Dollar continue to be higher than inflows. There remains a demand to buy the US Dollar from people who are selling out and the Reserve Bank of India is on many occasions the only supplier in the market, as some exporters believe that they can get a better deal.

Dealers also told CNBC-TV18 that the Reserve Bank has decided to let go in a gradual manner, and, you know, allow the market forces to take over. They're probably also telling the market that maybe the cheaper rupee is the solution to, you kno

See Full Page