Indian rupee weakens as oil surges to new record

MUMBAI, July 3 (Reuters) - The Indian rupee <INR=IN> weakened on Thursday, after global crude prices climbed to a record above $144 a barrel and spooked Asian stock markets.

* At 9:22 a.m. the rupee was at 43.32/33 per dollar, weaker than Wednesday's close of 43.17/18.

* The central bank is expected to intervene and limit the rupee's drop, like it has been doing for the past few weeks, but the undertone remains downbeat.

* India imports about 70 percent of its oil and refiners are the biggest buyers of dollars. For oil report, see: [O/R]

* Asian stocks fell on Thursday on signs of further deterioration in the U.S. economy, high oil prices and fears that stagflation would continue to damage company earnings and consumer spending. See [ID:nSP239867].

* Indian shares are expected to follow suit. On Wednesday, the main index had rebounded 5.4 percent after falling more than 10 percent in the previous three days. (Reporting by Swati Bhat; editing by Sunil Nair)