The dollar is likely to hit Rs 129 level within short period of time against the rupee, dealers said on the money market on Monday. The rupee shed one paisa versus the dollar for buying and selling at Rs 124.26 and Rs 124.27 respectively, they added.
In the final Asian trade, the dollar edged higher on Monday as China followed an easing in domestic policy by allowing its yuan to fall, though the drop was not as sharp as some had feared.
Moves were limited by a lack of liquidity with Japan on holiday and the US bond market on a break. A sudden and steep rise in Treasury yields had underpinned the dollar for much of last week.
China's central bank moved on Sunday to support the economy by slashing the level of cash that banks must hold as reserves. It was the fourth cut this year and comes as the economy struggles with the drag from an escalating trade dispute with the United States.
Beijing followed by setting its yuan at 6.8957 per dollar, the lowest since May last year but still short of the psychological 6.9000 level that dealers had eyed. The US currency was available against the Indian rupee at Rs 73.860, the dollar was at 4.150 in relation to the Malaysian ringgit and the greenback was trading at 6.898 versus the Chinese yuan.

========================
Open Bid       Rs.128.00
Open Offer     Rs.128.50
========================

========================
Bid Rate       Rs.124.26
Offer Rate     Rs.124.27
========================