* Indian rupee posts biggest daily percentage gain since July 26 * Fin Min Chidambaram says to unveil path to fiscal consolidation * USD demand from oil refiners caps rupee gains By Subhadip Sircar MUMBAI, Aug 6 (Reuters) - The Indian rupee rose to near a one-week high on Monday, catching up to a global risk rally following improving U.S. jobs data, while a promise from the finance minister to unveil fiscal consolidation steps sparked cautious hope. While the rupee will continue to take cues from global risk sentiment, investors will closely watch how the government tackles needed fiscal measures such as raising diesel prices or attracting foreign investment. Recently-appointed Finance Minister P.Chidambaram sparked a bit of optimism on Monday after saying he would shortly unveil a path of fiscal consolidation, while undertaking a review of tax provisions. The government's move this year to retroactively tax foreign investors had drawn widespread flak, leading the country to water down some provisions and postpone its implementation by a year. "The market has taken a positive note of Chidambaram's statement. The government has no choice now but to act as it is facing credibility issues," said Subramanian Sharma, director at Greenback Forex. The partially convertible rupee closed at 55.52/53 per dollar as per the SBI closing rate versus its previous close of 55.75/76. That was its biggest daily percentage rise since July 26. The rupee initially tracked a rally in global risk assets that sent the currency to a session high of 55.23 against the dollar after better-than-expected U.S. jobs data eased concerns about global growth. However, the rupee lost some of its momentum on sustained dollar demand from oil refiners, while the euro zone's debt woes remains a key thorn, leading the euro to retreat on Monday from its previous session's gains. "We are waiting for a trigger for the rupee. If it rises to 54.20 to a dollar, we may see a further rally as stop losses will get triggered and exporters, who were holding back, sell." Signs the government will implement major policy reforms could spark gains in the domestic currency, which just in late June had dropped to a record low of 57.32 against the dollar. Some analysts are already warning the rupee's may fail to gain too much. "The INR's sensitivity to global factors has increased and it will take time before the improvement in the current account cycle has a stabilizing influence on INR," Bank of America-Merrill Lynch wrote in a note on Monday. The bank reiterated its forecast of 57 to the dollar by the end of September. The one-month offshore non-deliverable forward contracts were at 55.82, while the three-month was at 56.48. In the currency futures market, the most-traded near-month dollar/rupee contracts on the National Stock Exchange, the MCX-SX and the United Stock Exchange all closed at around 55.71 with the total traded volume at around $3.7 billion. (Editing by Rafael Nam)

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