MUMBAI: The Indian rupee weakened on Monday, dragged by losses in the euro, most Asian currencies, and local shares, as fears of renewed recession in the United States and sustained worries about the euro zone debt crisis prompted investors to sell riskier assets. At 11:39 a.m. (0609 GMT), the partially convertible rupee was at 45.92/93 to a dollar, 0.3 per cent weaker than its previous close of 45.79/80. The index of the dollar against six major currencies was up at 74.876 points, from 74.506 at close of domestic currency markets on Friday, while the euro was at $1.4166, from its $1.4249 previous close. Data last Friday showed US employment growth ground to a halt in August, while the European debt crisis continued to fester with Greece and its international lenders now at odds over whether it has met conditions for a new aid tranche. "Overall sentiment in the market is rupee negative and there is no flurry of activity as market holiday in the US means that outflows will not take place," said a senior foreign exchange dealer at a private-sector bank. US financial markets will be closed on Monday for the Labor Day holiday, the traditional end to the US summer. The absence of dollar outflows could be supportive for the rupee, limiting any sharp falls, some traders said. The rupee is expected to move in a 45.85-46.05 band during trade. The weak payrolls data-fuelled fears of a recession in the United States weighed on the local equity markets, with the benchmark share index shedding more than 1.2 per cent, down from a two-week closing high seen on Friday.

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