Rupee falls to 47.50 against dollar

India imports about two-third of its oil needs and refiners are the biggest buyers of dollars in the domestic currency market.

Oil prices fell toward $72 on Friday as investors locked in gains from a near eight-month high settlement a day ago,but stronger-than-expected China factory output and retail sales data lent support.

The dollar was steady against other major currencies on Friday after falling the previous day when improved US labour market and retail sales figures boosted optimism about the economy,eroding the dollar’s allure as a safe haven.

The dollar index,a gauge of the US unit’s performance against six major currencies,was up 0.2 per cent.

Dealers said stocks would be watched for cues on direction of fund flows,and if factory output data due by midday beats expectations it could help the rupee.

Industrial output is likely to have shrunk marginally in April from a year earlier,its fourth fall in five months,but analysts think the worst has passed and output will start picking up,a Reuters poll showed.

“Industrial production will be a driver today. If we get a good number,then we may see some dollar selling,” Somani said.

Stocks were trading up 0.7 per cent,putting them on course for a 14th straight weekly gain for the first time in four years,as solid US economic data rekindled hopes the world economy was healing.