Rupee weakest since November 2006

The rupee falls to its lowest in nearly 2 years as the dollar strengthens against the euro while a sell-off in Asian stocks raised worries of more foreign fund outflows.

The Indian rupee fell to its lowest in nearly two years on Thursday as the dollar strengthened against the euro while a sell-off in Asian stocks raised worries of more outflows from the local share market.

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At 9:17 am (0347 GMT), the partially convertible rupee was at 45.41/45 per dollar, its weakest since November 24, 2006 and compared with 45.12/13 at close on Wednesday.

The dollar advanced to a new one-year high against the euro on Thursday as the market's focus reverted to sluggish economic prospects outside the United States and away from concerns about the US financial system.

Asian stocks fell broadly, with Tokyo's Nikkei share average slipping 1.2 per cent and Hong Kong's Hang Seng down nearly 2.2 per cent.