Reuters
 
Mumbai, Sep 6: Rupee fell to its lowest since December 2006 on Friday, as a stock market slide triggered concerns of further foreign fund outflows.

Rupee ended at 44.65/66 against dollar, from the previous close of 44.35/36.

At 3:42 p.m. (1012 GMT), the partially convertible rupee was at 44.70/72 per dollar, its lowest since Dec. 21, 2006 and weaker than its previous close of 44.35/36.

The Sensex fell 2.8 per cent, tracking losses in other regional stock markets weighed down by fears of a global economic slowdown.

Foreigners have sold more than $7.3 billion in local shares so far in 2008 pushing the stock market down by more than a quarter. They bought a record $17.4 billion in 2007.

A widening trade deficit added to funding concerns. The trade deficit in July was $10.8 billion, expanding from $9.8 billion in June. For April-July, the first four months of the fiscal year, the deficit widened to $41.23 billion between April-July from $27.35 billion a year earlier.