Rupee weakens, economic measures disappoint

The announcement disappointed investors who had expected bolder measures

The rupee and BSE Sensex trimmed gains after the Reserve Bank of India announced it would raise investment limits in government bonds, disappointing investors who had expected bolder measures.

At 2:39 pm Mumbai time, the rupee was at 56.96/97 to the dollar, weakening from 56.55 levels before the announcement.

The currency was still up on the day, after closing at 57.12/13 on Friday, and still well above its record low of 57.32 hit in the previous session.

India's benchmark indexes erased earlier mild gains to fall, with BSE Sensex down 0.2 percent.