Rupee down 16 paise against dollar

The rupee on Monday weakened by 16 paise to trade at nearly two-month low of 55.05 against the dollar in early trade at the Interbank Foreign Exchange market due to increased demand for the US currency from oil importers.

Forex dealers said besides dollar’s gains against euro and yen overseas, increased demand from oil importers for the American currency and a weak opening in the stock market also put pressure on the rupee.

The rupee fell by a whopping 53 paise to close at nearly two-month low of 54.89 against the US dollar in the previous session on Friday.