KARACHI, Oct 12: The rupee on Tuesday lost 11 paisa to the US dollar in the inter-bank market on a $20 million plus outflow of foreign exchange including oil import payment and government payments.

Besides, a couple of banks that were short of dollars were also out for dollar buying to meet the requirements of their clients.

Bankers said that the rupee fell to 59.53 a US dollar on Tuesday from 59.42 a dollar on Monday. They said the local currency shed 11 paisa despite a modest intervention by the central bank via a local bank.

The bankers said the rupee lost strength on higher demand for dollars for oil import payments as well government payments without commenting on the nature of the government payments.

Since the start of this fiscal year in July, the rupee has lost more than 2.4 per cent value against the dollar falling from 58.13 at the end of June to 59.53 on October 12.

The rupee has depreciated despite interventions by the central bank primarily because of widening trade deficit due to a dramatic increase in international oil prices and also because of higher imports of machinery and other products.