(Reuters) - The rupee was knocked off its early highs on Friday as dollar demand from oil importers remained strong and local equities moved deeper into negative territory.
* At 1:51 p.m. (0821 GMT), the rupee was at 49.14/15 to the dollar, after touching a high of 48.98 in early trades. The unit had closed at 49.19/20 on Thursday.
* Dollar buying by Indian oil refiners has assumed a sense of urgency in the past few days as global oil prices simmer due to rising tensions between Iran and western nations. For stories on oil, see
* The fact that India imports 80 percent of its oil needs, of which around 12 percent come from Iran, has added to domestic oil companies dollar needs.
* New Delhi is now looking to buy more oil from Saudi Arabia, as a replacement for a cut in supplies from Iran.
* But, strong foreign inflows are helping offset selling pressure on the rupee, which has gained around 8 percent this year after diving 16 percent in 2011.
* Foreign funds have invested around $9 billion into Indian equities and debt so far in 2012, according to Securities and Exchange Board of India.
* The BSE Sensex was down more than 1 percent as investors took profits on concerns about rising global oil prices and the country's widening fiscal deficit.
