The rupee fell further in afternoon trading on Monday, weighed by dollar demand from a local steelmaker and oil importers. Weaker Indian stocks added to the pressure.
* At 2:48 pm, the rupee was at 49.59/60 to the dollar, 0.6% weaker than 49.305/315 at the close on Friday when it rose to 49.2975, a level last seen on November 8.
* Traders said banks bought about $400 million, most likely for JSW Steel, India's third largest steelmaker.
* But other traders said selling in the local currency was not surprising given the sharp rebound after the record low of 54.30 was touched on December 15. The rupee has gained 7% so far in 2012 after erasing 16% of its value in 2011.
* The BSE Sensex was down 1.8% snapping a six session rally.
