Rupee pares all increases, drops to new record low of 71.79 against USD

Mumbai, Sep 5 The rupee pared initial increases to drop to a crisp untouched low of 71.79 against the US cash, falling 21 paise in late morning bargains Wednesday on sudden episodes of dollar-purchasing by banks and shippers.

Prior, the rupee continued higher at 71.43 against yesterday's end level of 71.58 a dollar at the interbank remote trade advertise here.

The Indian unit was exchanging on an unpredictable note, moving in a wide range citing somewhere in the range of 71.40 and 71.79 during morning deals.

"Rupee's speculative demand is causing unpredictability in the midst of emergency in the developing business sector monetary forms and steady ascent in the raw oil costs," 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.

Meanwhile, the 30-share BSE Sensex is humbly lower by 29.83 points or 0.08 percent at 38,128.09 at 1100 hrs.