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RTRS:Indian rupee falls for 5th day; importers' dollar demand
 
* Rupee ends at 63.71/72 per dollar vs 63.24/25 on Monday
* INR has weakened 3.3 percent in last five sessions
* Return of dlr demand from state-run oil cos touted as key
reason for INR fall-dealers

By Subhadip Sircar
MUMBAI, Nov 12 (Reuters) - The Indian rupee fell to a near
nine-week low on Tuesday, extending its losses for a fifth
session, on the back of continued greenback demand from
importers amidst a strengthening U.S. currency in global
markets.
Traders also attribute the rupee's weakness to the return of
state-run oil refiners, which are now sourcing part of their
dollar needs in markets and not through the special window
provided by the central bank in late August.
The tapering of the central bank oil window will provide a
test of fire for the rupee, since it comes at a time when
sturdier data from the United States and a rate cut from the
European Central Bank have led to a bout of global dollar
strength.
"The dollar's strength is generally due to demand from
everybody including importers, foreign banks, FIIs and
nationalised banks. There are hardly any supplies expect from
state-run banks," said Anil Kumar Bhansali, vice president at
Meclai Financial.
The partially convertible rupee closed at 63.71/72
per dollar, compared with 63.24/25 on Monday, its lowest close
in two month. It fell to an intra-day low of 63.84, its lowest
since Sept. 13.
The rupee has weakened 3.3 percent in the last five sessions
since the start of the oil window taper talk.
India will release the September factory data and October
consumer price inflation data later in the day. Dealers are
particularly awaiting retail inflation data which is getting
higher importance in the central bank's monetary policy
decisions.
In the offshore non-deliverable forwards, the
one-month contract was at 64.51, while the three-month was at
65.70.
FACTORS TO WATCH
* Dlr nears 100 yen on rising bond yields
* Share gains flag as China plan awaited, dlr firm
* Foreign institutional investor flows
* For data on currency futures

Source