Mumbai: The Indian rupee was slightly lower on Friday as higher oil prices could increase dollar demand from refiners, but a fall in the dollar against other currencies in the previous session provided some respite.
At 9:15 a.m. the partially convertible rupee was at 43.52/53 per dollar, marginally weaker than 43.51/52 at close on Thursday. It had touched a 17-month low of 43.87 earlier in the week.
Oi, India’s biggest import, was holding steady above $121 per barrel, a day after its biggest gain in three months.
Asian stocks slipped to a two-year low on Friday, falling for a fourth straight week, as a surge in oil prices to above $121 knocked the U.S. dollar and the spiralling financial crisis showed no signs of ending.
Dealers will watch for dollar inflows from Swedish truck maker Volvo’s investment of $275 million in a joint venture with Eicher Motors Ltd. The Indian cabinet approved the deal last month.