The partially convertible Indian rupee pushed away from 13-month lows in early deals on Friday after oil dipped from record highs and stock market gains raised hopes of capital inflows. Traders were also wary of adding to long dollar positions aggressively after the Reserve Bank of India (RBI) was seen selling dollars on Thursday to check the rupee's fall.
At 10:02 am (0432 GMT), the rupee was at 42.85/86 per dollar, a quarter of a percent stronger than Thursday's close of 42.96/97. It hit an intraday low of 43.21 per dollar on Thursday, a level it last traded in April 2007.
"Oil prices have come down today, so oil companies may wait until Monday or Tuesday to buy dollars, and people are also waiting for the inflation figures," said Suresh Kumar, a dealer with Corporation Bank. "We don't see RBI intervening in the markets today, only if the rupee again falls below the 43 level, the RBI may come in," he said.
India imports about 70 percent of its oil needs and refiners are the biggest buyers of dollars, with their demand tending to peak towards the month-end. Oil was trading slightly above $131 a barrel on Friday. It had touched a record high above $135 a barrel on Thursday.
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