India, Dec. 1 -- The Indian rupee dropped to a lifetime low on Monday, with unfavourable trade and portfolio flows and the lack of a U.S.-India trade deal overshadowing the boost from stellar growth.

The rupee declined to 89.59 against the U.S. dollar, dipping past its previous record low of 89.49 hit about two weeks ago.

The drop came right after India posted a blowout GDP number that exceeded all expectations. The economy expanded 8.2% in the September quarter, far above the 7.3% estimated in a Reuters poll.

Bankers said the robust growth has offered little respite to the rupee, which remains pressured by the lack of progress on a U.S.-India trade deal, importer hedging activity, and a balance of payments position that has turned les...