Rs falls 8 paise 89.53 against $, hits record low of 89.79 intraday

Mumbai: The rupee depreciated 8 paise to close at 89.53 against the US dollar on Monday, fuelled by strong market demand for the American currency.

Forex traders said the sustained weakness in the rupee is primarily attributable to a widening trade deficit, the delayed India-US trade deal, and limited central bank intervention.

At the interbank foreign exchange market, the rupee opened at 89.45, then lost its ground and fell to a record low of 89.79 against the US dollar in intraday trade, down 34 paise over its previous close.

The unit earlier logged its lifetime intraday low at 89.66 against the US dollar on November 21, when it had plunged 98 paise.

At the end of trade on Monday, the rupee settled at 89.53 against the greenback, down 8 paise over its previous close.

On Friday, the rupee dropped nine paise to settle at 89.45 against the US dollar. Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.17 per cent higher at 99.28.