Reuters Market Eye - The rupee is down 0.4 percent, headed for its biggest loss in nearly two weeks. Local stocks end down 0.8 percent, snapping a five-day winning streak.
Good all-round dollar buying seen on risk aversion.
Rupee at 62.00/01 versus Friday's close of 61.75/76.
Dealers 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 weighing on most Asian currencies.
China manufacturing PMI hits a seven-month low, further hurting risk currency sentiment.
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India's December GDP came in at a below expected 4.7 percent, data released after market hours on Friday showed.
INR found some support as Indian 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.
(Reporting by Subhadip Sircar)