Rupee hits all-time low of 54.85 per dollar

Mumbai, May 18:

hit another all-time low of 54.85 per

in the late morning

today losing 38 paise on fresh demand for the American currency from banks and importers.

The rupee resumed lower at 54.60/61 per dollar at the Interbank Foreign Exchange (Forex) market against the last closing level of 54.47/48 and dropped to 54.82/83, before trading at fresh all-time low to 54.85/86 at 1100 hrs.

Forex dealer said renewed demand for the American currency in view of stronger dollar in the international market amid weak equities affected rupee's value against the dollar.

The dollar continued to rise in Hong Kong market in the early trade, extending its longest rally since at least 1985, as raging fears about the eurozone's troubles and deep losses in Asian equities lured investors into currencies believed to be safer.

Meanwhile, the BSE benchmark Sensex dropped by 174 points, or 1.08 per cent, in the late morning trade.

PTI