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.
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.

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Open Bid       Rs.139.70
Open Offer     Rs.140.20
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Bid Rate       Rs.139.48
Offer Rate     Rs.139.50
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