Rupee falls to 2-month low on importer dollar demand

MUMBAI, Mar 20 (Reuters): The Indian rupee fell to its lowest level in two months on Wednesday, pressured by dollar demand from importers, including oil companies, debt repayment outflows and weakness in most Asian peers, traders said.

The rupee closed at 83.1575 against the US dollar, weaker by 0.15 per cent, compared with its previous close at 83.0350. The rupee touched an intraday low of 83.17, its weakest level since January 18.

Sustained dollar demand from local oil companies and other importers led the rupee lower during the session, a foreign exchange trader at a private said.

Meanwhile, the dollar-rupee overnight swap rate was also under pressure, signalling a potential crunch for cash dollars. The Reserve Bank of India's intervention to absorb dollar inflows has fuelled the shortage of dollars alongside corporate payment and equity related outflows.