The rupee hit new lows against the dollar on the money market on Thursday amid strong demand for the US currency, dealers said. Commenting on the surging demand for dollars, some leading marketmen observed that demand for dollars increased on the inter-bank market, which caused dearth of dollars on the open market, dragged the rupee to face fresh erosion in its value versus the US currency.
They also attributed that the rise in the value of dollar to asking demand to meet payment requirements.
INTER-BANK MARKET RATES: In sympathy with the open market trend, the rupee shed five paisas in terms of the dollar for buying and selling at Rs 139.48 and Rs 139.50 respectively, they said.
In the fourth Asian trade, the dollar nursed losses in Asia on Thursday after the Federal Reserve roiled markets by abandoning all plans to raise rates this year, a signal its three-year campaign to normalise policy might be at an end.
Investors rushed to price in the prospect of rate cuts later this year, while benchmark Treasury yields dived to their lowest since early 2018.
The Fed's swerve sent the dollar sliding to 110.47 yen, with its 0.6 percent loss overnight the biggest drop since the flash crash of early January.
The euro flew to a seven-week peak and was last trading at $1.1424, a world away from its recent low of $1.1177.
That left the dollar down at 95.908 against a basket of currencies, having lost 0.5 percent overnight. It was also poised precariously on its 200-day moving average, and a sustained break would be taken as technically bearish. The dollar was trading against the Malaysian ringgit at 4.058 and the greenback was available at 6.682 versus the Chinese yuan.
OPEN MARKET RATES: The rupee dropped by 40 paisas in relation to the dollar for buying and selling at Rs 139.70 and Rs 140.20 respectively, they said. The rupee also lost 80 paisas versus the euro for buying and selling at Rs 158.30 and Rs 160.10 respectively, they said.
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Open Bid Rs.139.70
Open Offer Rs.140.20
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Interbank Closing Rates: Interbank Closing Rates For Dollar on Thursday.
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Bid Rate Rs.139.48
Offer Rate Rs.139.50
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RUPEE IN LAHORE: The Pak rupee maintained downward trend for the third consecutive day against the greenback in the local currency market on Thursday.
According to currency dealers, the short supply phenomenon of the greenback prevailed for another day in the market which helped its further appreciation for buying and selling at Rs 140.10 and Rs 140.70 against the overnight closing trend of Rs 139.70 and Rs 140.20 respectively.
The local currency, however, showed strength as it recovered its earlier losses versus the pound sterling. The pound's buying and selling rates declined from the Wednesday's closing of Rs 183.90 and Rs 184.70 to Rs 183.20 and Rs 184.20 respectively, they added.
RUPEE IN ISLAMABAD AND RAWALPINDI: The dollar gained 50 paisa against the rupee at the open currency markets of Islamabad and Rawalpindi here on Thursday.
The dollar opened at Rs140 (buying) and Rs 140.10 (selling) against last rate of Rs139.50 (buying) and Rs 139.60 (selling). It closed at Rs 140 (buying) and Rs 140.10 (selling).
The buying and selling rates of one tola of gold was Rs. 59,400 (selling) and Rs 59,000 (buying) in the local Sarafa (gold) markets of Rawalpindi and Islamabad.
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