Rupee recovers losses as banks cut long dlr positions

MUMBAI, May 14 (Reuters) - The Indian rupee was close to fresh one-year lows in late afternoon trade on Wednesday, as banks liquidated long dollar positions and cashed in on differentials between the local and overseas rates.

* At 4.08 p.m., the partially convertible rupee <INR=IN> was at 42.50/51 per dollar, after touching an intraday low of 42.67, the weakest since mid-April. It ended at 42.10/11 on Tuesday.

* Oil CLc1 hit record highs close to $127 a barrel on Tuesday. India imports 70 percent of its oil and refiners are among the biggest buyers of dollars in the local market. (Reporting by Swati Bhat; editing by Sunil Nair) (saikat.chatterjee@thomsonreuters.com; +91 22 6636 9035; Reuters Messaging: saikat.chatterjee.reuters.com@reuters.net)