MUMBAI, June 28 Reuters The Indian rupee hit record lows against the U.S. currency on Tuesday after higher oil prices raised concerns of sustained inflation, although intermittent dollar selling by the central bank helped limit losses.

The partially convertible rupee was trading at 78.7576 per dollar by 0745 GMT, compared to its close of 78.34 on Monday. The unit touched an alltime low of 78.7750 just earlier in the session.

India imports more than twothirds of its oil requirements, and higher crude prices add to the country39;s trade and current account deficits CAD and hurt the rupee by pushing up imported inflation.

With crude rising yet again, we could see rupee head towards 7979.50 levels in the next week or so depending on what the central bank does, a senior trader at a private bank said.

Oil prices rallied for a third day as major producers Saudi Arabia and the United Arab Emirates looked unlikely to be able to boost output significantly, while political unrest in Libya and Ecuador added to supply concerns.

Dealers said the Reserve Bank of India has been intermittently selling dollars via staterun banks to prevent runaway losses in the rupee, but dollar demand in the system was far stronger.

Global dollar funding stress is evident through the widening LIBOROIS spread, and in the domestic market, RBI39;s heavy forwards market intervention has compounded the problem of cash dollar shortage, analysts said.

The RBI has been selling forward dollars to avoid…