MUMBAI: Rupee weakened on Thursday as
oil refiners stepped up dollar buying to meet end-of-month
commitments.
With oil rising to more than $118 a barrel, import
payments will rise. India imports about 70 per cent of its
oil.
Traders will watch the stock market for clues on fund flows.
Foreigners have been net sellers of $7.4 bn of stocks so far in 2008 after
buying a record $17.4 bn last year.
Asian stocks were little changed,
but commodity-related shares received a boost from crude prices, which have
recovered $7 since hitting a three-month low. At 9:13 am, the partially
convertible rupee was at 43.74/75 per dollar, weaker than Wednesday's close of
43.71/72. On Tuesday, it hit a 17-month low of 44.26.