The Indian rupee may slip to an all-time low on Tuesday with the currency, already under pressure from slowing growth, choppy equity flows and a dollar rally, will have to contend with an unexpected widening in trade deficit to a record high.

Indian rupee touched an all-time low in the early trade on December 17 after India's merchandise trade deficit widened to record high. Indian rupee touched a record low of 84.93 against the US Dollar in early trade, as compared to 84.90 at open and 84.87 close on the previous trading session.

The Indian rupee weakened to its lifetime low on Tuesday, hurt by concerns about a widening trade deficit and likely outflows from local equities, although intervention by the central bank capped losses.

The Indian rupee weakened to its lifetime low on Tuesday, hurt by concerns about a widening trade deficit and likely outflows from local equities, although intervention by the central bank capped losses.

India’s trade deficit expanded to a record high in November, as the nation’s import bill ballooned, particularly due to a rise in gold shipments.

India's trade deficit hit a record $37.84 billion in November, driven by gold imports and declining exports, pressuring the rupee further.

The Reserve Bank of India (RBI) likely intervened to support the rupee after the currency slipped to an all-time low on Tuesday amid worries over a sizeable widening of the Asian nation's trade deficit.