(RTTNews) - The Indian rupee that fell to a 1-week low of 49.56 against the US dollar at the beginning of Monday's trading erased some of its losses in subsequent trading hours.
The Indian markets extended previous sessions' losses on increasing eurozone debt concerns after the Greek government said over the weekend that it will miss its 2011-12 deficit targets set by the EU and International Monetary Fund as part of the country's bailout.
Besides global cues, domestic data showing deceleration in the manufacturing sector also dampened investor sentiment, with the HSBC India Manufacturing PMI, or Purchasing Managers' Index, falling more than two points to 50.4.
The benchmark 30-share Sensex fell 302 points or 1.84 percent to 16,151, while the broader Nifty index closed at 4,849, down 94 points or 1.9 percent from its previous close.
The rupee appreciated by more than 0.8 percent to reach 49.1450 in the afternoon deals from its 1-week low. If the domestic unit strengthens further, it may find target around the 48.9560 level, at which point the 10-day simple moving average level of the USD/INR pair stands.
