Indian rupee up as dlr buying by oil firms subsides

(Updates to open)

MUMBAI, May 16 (Reuters) - The Indian rupee rose on Friday as dollar demand from refiners subsided after global oil prices hovered below $125 a barrel.

* At 11:35 a.m. (0605 GMT), the partially convertible rupee was at 42.55/56 per dollar, about 0.5 percent higher than Thursday's close of 42.75/76.

* "We haven't seen much oil related dollar buying today. This has perked up sentiment," a trader with a state-run bank said.

* Oil CLc1 is India's biggest import, with the country importing more than two-thirds of its requirements. Crude refiners are the biggest buyers of dollars and rising oil prices increase their demand for dollars. (Reporting by Anurag Joshi; Editing by Charlotte Cooper)