MUMBAI, Oct 18 (Reuters) - The Indian rupee weakened on Tuesday dragged by weak domestic equities, a lacklustre euro and some dollar demand from domestic oil companies.
But, the local currency found some support from exporters' dollar selling, traders said.
At 10:59 a.m. (0529 GMT), the partially convertible rupee was 49.09/10 per dollar, 0.3 percent weaker from Monday's close of 48.945/955. It had dipped to 49.20 in early trade.
"Rupee opened down tracking the weak global risk appetite. The decline in domestic equities coupled with the likely strength in dollar world over could keep the rupee under pressure, but exporters may keep the losses checked," said Vikas Chittiprolu, a senior foreign exchange dealer with the state-owned Andhra Bank.
For the day, the local unit could move in a band of 49.00 to 49.25, traders said.
Asian stocks and commodities fell on Tuesday after Germany's finance minister cautioned against hopes for a quick fix to Europe's debt problem, and news that China's economic growth slowed a tad in the third quarter added to concerns.
Comments from Germany weighed on the euro as well and limited any recovery in the single currency.
The euro was at $1.3771, below $1.3786 at end of rupee trade on Monday when it had hit a one-month high of $1.3914.
The index of the dollar against six major currencies was at 77.015 points, above 76.998 on Monday.
Oil is India's biggest import item and domestic oil refiners are the largest purchasers of dollars in the local currency market.
Brent crude futures fell below $110 on Tuesday, after China's economy grew a shade below expectations in the third quarter, failing to dispel fears of slowing growth in the world's second largest oil consumer.
The one-month onshore forward premium on the rupee was at 23 points from 24 on Monday, the three-month premium was at 60.25 points from 60.75 points and the one-year premium was 133.75 points, from 135.75.
The one-month offshore non-deliverable forward contracts were quoted at 49.33, weaker than the spot rupee rate.
In the currency futures market , the most traded near-month dollar-rupee contracts on the National Stock Exchange, the MCX-SX and the United Stock Exchange were all at 49.1875. The total traded volume on the three exchanges was $1.19 billion.
Source : in.reuters.com