Indian rupee at 1-yr lows; looks to stocks, oil

MUMBAI, May 13 (Reuters) - The Indian rupee <INR=IN> is seen holding at one-year lows on Tuesday as investors wait for the stock market opening to determine whether foreign investors are still keen to invest after weak factory data a day earlier.

* Oil prices eased on Tuesday as some investors saw a recent rally to record highs as excessive, while Asian shares gained as banks were bolstered by further signals the worst of the credit crisis may now be over. [ID:nSP284410].

* The partially convertible rupee ended at 42.05/06 per dollar on Monday, more than 1 percent down from Friday's close of 41.60/61. It has fallen 3.4 percent since May 2 to its lowest since April 2007.

* Industrial output grew 3.0 percent in March from a year earlier, its weakest growth in six years as high interest rates squeezed demand for consumer goods.[ID:nBOM216199]

* The stock market has fallen almost 17 percent in 2008 due to foreign fund selling of more than $2.9 billion. Capital inflows are a key driver for the local unit.

* The rupee has lost 6.3 percent against the dollar so far in 2008 to be Asia's weakest currency behind the Korean won <KRW=>. The rupee rose more than 12 percent in 2007. (Reporting by Saikat Chatterjee; Editing by John Mair)