Indian rupee rises as stocks gain, oil key

Enlarge Photo A man uses an electronic machine to check an Indian currency note at a money...

Fri, Jul 4 04:13 PM

MUMBAI (Reuters) - The rupee rose on Friday, as gains in the local stock market renewed hopes of some capital inflows, but oil prices near record levels continued to put downward pressure on the local unit.

* At 3:48 p.m., the rupee was at 43.11/12 per dollar, stronger than Thursday's close of 43.30/31. It hit a 15-month low of 43.50 on Tuesday.

* India's main share index rose 2.75 percent on Friday after shedding 4.2 percent in the previous session.

* Rising foreign portfolio outflows, a widening trade gap and an unrelenting rise in the price of oil are likely to drive the rupee down nearly 2 percent in coming months, a Reuters poll showed.

* Oil, India's biggest import was trading above $144 a barrel, close to record levels hit in the previous session.

* India imports about 70 percent of its oil and its oil bill is expected to hit $110-$120 billion in 2008/09, from $77 billion in the previous fiscal year due to higher world prices, petroleum secretary M.S. Srinivasan said.

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