The Indian rupee was largely steady in thin trade on Friday afternoon but losses in the share market and a stronger dollar overseas continued to weigh. * Volumes in the forex market were hit by the central bank employees' strike which has disrupted payment and settlement operations. * At 2:20 p.m., the partially convertible rupee was at 49.86/88 per dollar, off a low of 50.045, but still weaker than its previous close of 49.62/63. * Indian shares .BSESN were down more than 3 percent, led by energy group Reliance Industries (RELI.BO: Quote, Profile, Research) and banks after data showed the U.S. recession could worsen, affecting economies elsewhere. [.BO]. * The dollar and the yen rose on Friday as worries about the financial sector and the global economy knocked Asian stocks down, prompting investors to shun higher-yielding currencies perceived as riskier. [USD/]. (Reporting by Swati Bhat; Editing by Ramya Venugopal)

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