New Delhi, Nov. 24 -- The Indian rupee touched a new record low of about Rs 89.50 against the US dollar. The currency came under pressure because the demand for dollars increased, cash availability in the banking system remained tight and foreign inflows were not steady.
The rupee depreciated quickly after it broke key levels, which activated automatic sell orders and pushed it down further.
Depreciation of any currency refers to the fall in currency's value in a floating exchange rate system where demand and supply determine the value of currency.
Importers have been buying more dollars for their payments, and the limited supply of dollars in the market made the rupee weaken more easily.
Even though global factors like crude oil prices...