Rupee drops as current account deficit worries weigh

The rupee dropped sharply in trade today with the currency breaching the 53 levels once again on worries that the current account deficit may have hit a record.

The Indian rupee was trading at 53.09, down 22 paise over Wednesday's close. Brokerage firm Nomura has estimated that India's current account deficit may have touched a peak of 4.9% of GDP during the quarter ended September 30.

The rupee has gained over the last few weeks following the government's reforms measures initiated in September 2012. However, the sharp gains in the rupee is likely to affect exports and the trade deficit.

Oil imports have also been rising steadily, which is likely to put further pressure on the rupee.

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