The rupee is trading lower at 61.85/86 per dollar after falling to 61.95 earlier in the session, versus Friday's close of 61.75/76. Dealers are watching for the timing of possible dollar outflows related to Iran oil payments. India is ready to pay $1.5 billion to Iran to clear part of a backlog of payments for shipments of oil following the partial easing of western sanctions on Tehran, Oil Secretary Vivek Rae said on Tuesday. Global risk aversion on geopolitical tensions in Ukraine is weighing on most Asian currencies. China manufacturing PMI, which hit a seven-month low is further hurting the risk sentiment. December GDP that came in at a below expected 4.7% is also a drag. But the rupee found some support as manufacturing activity and new orders showed their strongest growth in a year in February, according to a survey released on Monday that suggested that the worst is over for Indian factories struggling through an economic slowdown.

Source