Indian rupee may drop after oil hits another peak

MUMBAI, May 14 (Reuters) - The Indian rupee may drop to a fresh 13-month low on Wednesday, weighed down by record oil prices and worries that signs of slowing growth will lead foreigners to pull out money from the stock market.

* The partially convertible rupee ended at 42.10/11 per dollar on Tuesday, off an intraday trough of 42.2175, its lowest since mid-April 2007. It had closed at 42.05/06 on Monday.

* Oil CLc1 surged to a record peak near $127 on Tuesday after OPEC producer Iran said it was studying a plan to cut output. [O/R]. High global oil prices raise the risk of widening India's trade deficit and putting downward pressure on the rupee.

* The stock market has fallen about 17 percent in 2008. Foreign funds have been net sellers of more than $3 billion of stocks this year, a sharp turnaround from record buying of $17.4 billion in 2007.

* Seven bombs ripped through the crowded streets of India's western city of Jaipur in quick succession on Tuesday evening, killing around 60 people in markets and outside Hindu temples, officials said. See [ID:nBOM15420].