Introduction:
The recent depreciation of the rupee has been attributed to a significant current account deficit. In this response, we will evaluate the validity of this statement and provide an analysis of the factors contributing to the rupee's depreciation.

Understanding the Current Account Deficit:
- The current account deficit refers to the imbalance between a country's total imports and its total exports, including goods, services, and transfers.
- It is calculated as the sum of the trade balance (exports minus imports), net income from abroad, and net current transfers.

Factors contributing to the depreciation of the rupee:
1. Trade Imbalance: A current account deficit indicates that a country is importing more goods and services than it is exporting. This trade imbalance puts pressure on the domestic currency, leading to its depreciation.
2. Increased Import Demand: A growing economy often leads to increased demand for imports. If a country heavily relies on imports for essential goods or raw materials, it can contribute to a current account deficit and subsequently weaken the currency.
3. Global Factors: External factors such as changes in global commodity prices, interest rates, or geopolitical tensions can impact a country's current account deficit. For instance, a rise in oil prices can increase import costs, widening the deficit and putting downward pressure on the currency.
4. Investment Flows: The inflow of foreign investments, particularly in the form of portfolio investments, plays a significant role in determining the exchange rate. If foreign investors perceive a higher risk in a country with a current account deficit, they may withdraw their investments, leading to a depreciation of the domestic currency.
5. Speculation and Market Sentiment: Market sentiment and speculative activities can amplify the depreciation of a currency. If investors anticipate a further decline in the rupee's value, they may engage in speculative trading, exacerbating the depreciation.

Conclusion:
While it is true that the recent depreciation of the rupee can be partially attributed to a significant current account deficit, it is essential to consider other factors that contribute to currency depreciation. Global factors, increased import demand, investment flows, and market sentiment all play a crucial role in determining the exchange rate. Therefore, it is necessary to adopt a comprehensive approach when analyzing the depreciation of a currency and its underlying causes.