(RTTNews) - Monday, the Indian rupee slipped to near a 2-month low against the dollar as jitters about the global economy and uncertainty about corporate earnings hit investor confidence across Asia. Buying activity in frontline stocks helped the benchmarks to erase most of intra-day losses but still end in the red. Flat-to-positive European markets helped the benchmarks to arrest the fall. Traders, however, continued to hammer stocks from midcap and smallcap space. Bombay Stock Exchange's Sensex closed at 13410.37, down 93.85 points or 0.69 per cent. National Stock Exchange's Nifty ended at 3975.50, down 28.40 points or 0.71 per cent. The rupee to fell to 49.45 against the dollar today, its lowest level since May 18. If the Indian currency weakens further, it may likely target the 50 level. At last week's close, the dollar-rupee pair was quoted at 48.77. The rupee slipped 2.4 percent last week, its biggest weekly drop since early March, when it lost 2.8 percent, tracking sharp losses in local shares, which lost 9.4 percent. Reserve Bank of India or RBI Governor D. Subbarao in an interview with Central Banking Publications, London, recently, said the challenge before the RBI was to create the stage for a 9% growth in an environment of price and financial stability. India has achieved growth of 9% over the four years to 2008 and has slumped to 6.7% during the last fiscal. The Governor said the RBI's prime objective was to turn the economy into high growth path.

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