Rupee dives 1% after local shares, euro

The rupee was down nearly a percent in afternoon trade on Tuesday, pummelled by soft domestic equities and euro, as fears Europe's debt woes would worsen dented risk appetite globally.

* At 1:41 pm, the partially convertible rupee was at 49.17/18 per dollar, 0.98% weaker from Monday's close of 48.69/70. It had so far moved in a range of 48.8300 to 49.1851. * The euro was at USD 1.3747, sharply down compared with USD 1.4001 at the end of local trade on Monday, while the index of the dollar against six major currencies was at 76.968 points versus 75.982 points. * Global risk aversion weighed on local benchmark share index as well. It was down more than 1.3%. * Greek Prime Minister George Papandreou has threatened the euro zone with a new crisis with his shock announcement that he will hold a referendum on the last-minute bailout deal struck only last week to try to contain the bloc's debt mountain.