MUMBAI: Rupee weakened on Tuesday as global growth concerns heightened risk aversion and dented confidence in the euro, Asian currencies and equities.
At 11:44 a.m. (0614 GMT), the partially convertible rupee was at 46.13/14 per dollar, 0.3 per cent weaker than Monday's close of 45.985/995. Traders said it could weaken further on bunched-up dollar outflows after US market holiday on Monday.
"We are at critical levels. If we see 46.20 breaking, then the momentum can take it to 46.50," said a senior foreign exchange dealer at a foreign bank.
However, dollar selling by exporters around 46.20 may provide some breathing space for the rupee, traders said.
The rupee had touched 46.2150, a more than 11-month low, on Aug. 25. Asian shares and the euro fell on fears that Europe's sovereign debt troubles are worsening and could trigger a second, full-blown banking crisis.
Concerns over global growth have deepened since last Friday when a bleak jobs report hinted the United States may slip into a recession.
Sensex shed more than 1 per cent on growth worries.
