Mumbai, Jan. 22 -- The Indian rupee (INR) depreciated against the US dollar in December, pressured by foreign portfolio outflows and uncertainty surrounding the India-US trade deal, RBI noted in its January bulletin. The volatility of the INR, as measured by the coefficient of variation, remained relatively lower than that of most major currencies. In January so far (up to 19th), the INR depreciated by 1.2 per cent over its end-December level. In real effective terms, the Indian rupee depreciated in December due to depreciation of INR in nominal effective terms and relatively lower inflation in India vis-a-vis its major trading partners.

Net FPI registered outflows from both the equity and debt segments in December, amidst uncertainty su...