* 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
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