PTI

Mumbai, May 28: The Indian rupee is short of just three paise to touch the key Rs 43 level against a US dollar as the domestic unit lost 24 paise today at 42.96/97 against the greenback today as oil refiners stepped up dollar buying amid inadequate supplies of the US currency.

At the Interbank Foreign Exchange market, the local currency moved in a range of 42.79 and 42.97 during the day after resuming weak at 42.79/80 a dollar from its last close of 42.72/73 a dollar.

Foreign exchange dealers said dollar demand picked up as oil companies bought more dollars for import payments in view of sky-high global oil prices, which hovered near their record highs.

Indian imports 70 per cent of its oil requirements and oil refiners normally make dollar purchases in the last week of the month, they added.

Importers, particularly oil companies are under pressure due to soaring world crude prices.

A dealer with a public sector bank said there was inadequate dollar supplies in the exchange market due to sustained capital outflows and exporters' hesitancy to sell dollars even as the current levels are considered attractive for booking profits.

Foreign Institutional Investors (FIIs) pulled out more than USD 3.0 billion so far in the calendar year.

Meanwhile, Indian benchmark Sensex closedc 73 points lower while Asian indices staged a moderate recovery.