Mumbai: 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. The rupee fell 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.
Meanwhile, the BSE benchmark Sensex fell by 59.46 points, or 0.31 per cent, to 18,859.46 in early trade.
The rupee fell due to increased demand for the US currency from oil importers.