MUMBAI, Dec 26 Reuters The Indian rupee hit a lifetime low for the seventh straight session on Thursday, adding to its losses in the current quarter on the back of a combination of a wider trade deficit and anaemic capital flows.

The rupee dropped to an alltime low of 85.2525 per U.S dollar, tracking a decline in most of its Asian peers.

It has lost 1.74 since the beginning of October and is headed for its worst quarterly performance since JulySeptember 2022.

India39;s changing balance of payments BoP picture as well as the runup in the dollar and U.S. yields since Donald Trump39;s U.S. election victory have undermined the South Asian currency.

India39;s trade deficit has widened by 18.4 yearonyear from April to November, per IDFC First Bank39;s calculations. Meanwhile, outflows from equity and debt are tracking 10.3 billion this quarter, reversing from inflows of 20 billion in the previous quarter, per NSDL data.

That combination, according to economists, has resulted in a BoP deficit in the current quarter. The BoP is estimated to be 20 billion to 30 billion this fiscal year, compared to a surplus of over 60 billion in the previous fiscal.

The BoP outflows, coupled with a strong dollar, will keep the rupee under pressure, IDFC said, forecasting that the currency will weaken to 86 by September 2025.

DOLLAR IN DEMAND

The dollar39;s rally in the wake of Trump39;s election win is adding to the rupee39;s headwinds. The dollar index is hovering near yeartodate highs…