Mumbai: The Indian rupee softened on Thursday as oil refiners, the biggest buyers of dollars in the local market, stepped up purchases to meet their month-end commitments amid a rebound in oil prices.
Oil, which hit 12-week lows on Tuesday, rose more than $4 a barrel on Wednesday after US gasoline stocks fell.
At 9:05 a.m, the partially convertible rupee was at 42.50/51 per dollar, weaker than the previous close of 42.36/37.
The central bank raised its key interest rate on Tuesday for the third time in two months as it stepped up efforts to rein in double-digit inflation.
The apex bank also said that it was ending a two-month-old scheme of providing foreign exchange directly to oil refiners in exchange for special government-issued bonds.