Rupee at day's low on oil demand

The rupee fell to the day's lows on continued month-end demand from oil refiners. The Indian currency was trading around 57.14 a dollar versus its previous close of 57.01/02.

Trader says some foreign banks have been on sell side, keeping gains in the pair capped.

"Oilers are still asking around for quotes, so difficult to say whether the proposal to keep half of demand to a single state-run bank has been implemented," says dealer.

Reserve Bank of India has discussed with state-run oil firms steering 50% of their dollar purchases via a single state-owned bank to smoothen volatility in the rupee, though no decision has been made, two oil executives said on Friday.

Dealers will watch for RBI intervention if pair makes bid towards record high of 57.32 hit on Friday.