RTRS: Indian rupee erases early gains as oil cos buy dlrs
The Indian rupee rose in early trade on Thursday as it drew strength from stock market gains across Asia, but ended weaker as firm oil prices pushed up dollar buying by refiners.
The partially convertible rupee ended at 49.13/16 per dollar, off an early high of 48.85 and slightly weaker than Wednesday's close of 49.11/13.
"Refiners stepped up buying in the afternoon," a trader with a state-run bank said.
Oil CLc1 rose above $44 a barrel on supply concerns, with traders wary ahead of U.S. data expected to show a build in crude inventories. Oil is India's biggest import and a rise in crude prices raises worries of a widening trade deficit.
The rupee had risen in early trade after major Asian stock markets headed higher and raised hopes for capital inflows.
Indian shares snapped a two-day slide and climbed 0.4 percent, but trading was choppy as investors remained wary over earnings from leading companies. [.BO] Foreign capital is a key driver of the rupee. Foreigners have sold about $920 million worth of local shares this month, after having dumped more than $13 billion in 2008.
