The rupee is seen ranged on Tuesday, with a subdued outlook for stocks keeping traders uneasy about foreign flows. The partially convertible rupee ended at 42.945/955 per dollar on Monday, off an early high of 42.85, and a shade weaker than Friday's close of 42.94/95.

It had hit a 13-month low of 43.21 in late May. Asian stocks edged lower on Tuesday after oil prices surged to a fresh record overnight, fuelling fears that higher inflation will sap consumer demand and business investment around the world.

Foreigners have been net sellers of $5.6 billion rupees worth of Indian stocks so far in 2008, helping push the rupee down more than 8 percent. They had bought a record $17.4 billion last year when the rupee rose more than 12 percent. India's main stock index rose 1.4 percent on Monday to its highest close in more than a week as investors picked up beaten-down stocks such as financials.