Rupee up as exporters sell dollars; stocks key

Enlarge Photo A money changer counts U.S. dollars in Mumbai in this May 21, 2003 file photo....

Fri, May 23 02:24 PM

MUMBAI (Reuters) - The Indian rupee backed away from 13-month lows on Friday as exporters sold dollars on expectation the Reserve Bank of India will step in to prevent further weakening in the local currency.

Gains were, however, checked as losses in local stock markets raised concerns of declining inflows into the system.

* At 2 p.m. the partially convertible Indian rupee was at 42.765/775 per dollar, below Thursday's 42.96/97 and backing further away from its recent low of 43.21, the lowest since early April 2007.

* Stock markets opened higher but headed down after the inflation data and European markets opening down.

* Oil prices which were close to $131 a barrel in early morning trade, are trading close to $132 a barrel, raising concerns of inflation rising further in the coming weeks.

* India's annual inflation rate topped 8 percent in March for the first time in 3-½ years, revised data showed on Friday, and analysts said a looming fuel price rise could push it closer to double digits.

(Reporting by Swati Bhat)

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