The rupee pared initial gains to drop to a fresh all-time low of 71.79 against the US currency, falling 21 paise in late morning deals Wednesday on sudden bouts of dollar-buying by banks and importers.
Before this, it plunged to a fresh record low of 71.75 to a dollar during the early morning trade session today.
Around 10.40 a.m. the Indian rupee traded at 71.75 to a dollar – the lowest ever mark – it has touched against the greenback.
It opened the day’s trade at the Inter-Bank Foreign Exchange Market at 71.44 to a dollar from its previous close of 71.58 to a greenback.
The Indian unit was trading on a volatile note, moving in a wide range quoting between 71.40 and 71.79 during morning deals.
Earlier, the rupee resumed higher at 71.43 against yesterday’s closing level of 71.58 a dollar at the interbank foreign exchange market here.
"Rupee’s speculative demand is causing volatility amid crisis in the emerging market currencies and consistent rise in the crude oil prices," a dealer said.
The dollar strengthened against a basket of currencies overseas as the US economy continued to exhibit strength amid a lingering threat of escalation in the US-China trade conflict, leading to a fall in the domestic unit.>