Rupee slips to new low

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MUMBAI: The rupee plunged to a new record low of 71.79 to a dollar during the morning trade session on Wednesday.

Around 11.40 a.m. the rupee traded at 71.76 to a dollar before it touched 71.79 -- the lowest ever mark -- against the greenback, a report in the Outlook said.

The rupee pared initial gains to drop 21 paise in late morning on sudden bouts of dollar-buying by banks and importers. The rupee had earlier touched 71.75 to a dollar around 10.40 a.m. on Wednesday.

The Indian rupee opened the day's trade at the Inter-Bank Foreign Exchange Market at 71.44-45 to a dollar from its previous close of 71.58 to a greenback.

According to Anindya Banerjee, Deputy Vice President for Currency and Interest Rates with Kotak Securities, the weakness in the country's equity and bond markets led to the rupee's fall, the report said.

A dealer said rupees speculative demand is causing volatility amid crisis in the emerging market currencies and consistent rise in the crude oil prices.

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, according to a report in Mumbai Mirror.

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