India’s rupee weakened on speculation some refiners bought dollars to settle month-end import bills as conflict in the Gaza Strip escalates. Importers, betting crude oil may extend gains after Israel hinted it was ready to broaden its assault on the Hamas- controlled region, may be stocking up dollars to pay for their shipments. Asia’s third-biggest economy depends on imports to meet about 75 percent of its annual energy needs. The currency also fell as overseas funds sold more Indian shares than they bought for a fourth day, the longest stretch in a month. “Investors had priced in some comfort from the recent decline in oil prices which has reversed now,” said Indrajit Sengupta, a currency trader at state-owned Canara Bank in Mumbai. “That, together with a weak equity-market sentiment, is hurting the rupee.” The rupee slipped 0.2 percent to 48.52 against the dollar as of 10:01 a.m. in Mumbai, according to data compiled by Bloomberg. It may drop to 48.80 next week, Sengupta said. Crude oil for February delivery traded at $39.78 a barrel on the New York Mercantile Exchange, compared with a close of $35.35 on Dec. 24. Prices reached a record high of $147.27 in July, Bloomberg data show. India’s average oil import costs increased to $8.6 billion a month this year, from $5.5 billion in 2007, trade ministry data show. Sales of Indian equities by foreigners exceeded purchases by a record $13.4 billion this year as the benchmark stock index slumped 53 percent.

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