Rupee hits record closing low of 58.77 against dollar

The Indian rupee hit a record closing low of 58.77 against the dollar on Tuesday on lingering worries over the country's current account deficit.

The partially convertible rupee closed at 58.77 at the interbank foreign exchange market here, surpassing the previous lowest close of 58.39 hit June 11. The rupee had closed at 57.87 on Monday.

In the intra-day trade, the rupee approached 58.98.

The value of the rupee dropped sharply on Tuesday on renewed concern over the country's current account deficit.

India's trade deficit widened to seven month high of $20.14 billion in May due to sluggish exports and higher imports, notably of gold and silver, according to data released by the commerce ministry on Monday.

High trade deficit will put further pressure on the country's current account deficit, which touched a record high of 6.7% in the quarter ended Dec 31, 2012.