Indian rupee rises but record oil may cap gains

MUMBAI, July 4 (Reuters) - The Indian rupee <INR=IN> edged up on Friday as investors covered their short positions but with oil holding above $145 a barrel and shaky stock markets raising prospects for more capital outflows, gains may be limited.

* At 9:38 a.m. (0408 GMT), the rupee was at 43.26/27, a shade stronger than Thursday's close of 43.30/31. It hit a 15-month low of 43.50 on Tuesday.

* Rising foreign portfolio outflows, a widening trade gap and an unrelenting rise in the price of oil are likely to drive the rupee down nearly 2 percent in coming months, a Reuters poll showed. [ID:nBOM265184].

* Oil steadied on Friday as the United States headed into the Independence Day long weekend, pausing after the previous day's rally to a record near $146. [O/R].

* India imports about 70 percent of its oil and its oil bill is expected to hit $110-$120 billion in 2008/09, from $77 billion in the previous fiscal year due to higher world prices, petroleum secretary M.S. Srinivasan said. [ID:nDEL271491].

* The rupee has lost 1 percent so far this week, and is down more than 9 percent in 2008. It had gained 12.3 percent last year.

* Indian shares fell 4.2 percent on Thursday, taking their losses to 15 percent in two weeks, as record oil prices intensified inflation expectations and possibly tighter monetary policy. [.BO] (Reporting by Saikat Chatterjee; Editing by Prem Udayabhanu)