By Anoop Agrawal Oct. 24 (Bloomberg) -- India's rupee fell through 50 against the dollar to a record low as stocks in the region slumped on increasing signs that global economies are headed for a recession. The currency is poised for its 11th weekly loss after the Reserve Bank of India cut the economic growth outlook for the year ending March 31 to as little as 7.5 percent from an earlier estimate of 8 percent. It also left the benchmark interest rate unchanged, dashing investor expectations for a reduction to prevent an economic slump. ``Domestically, the exchange rate is not getting support from the interest-rate policy and a cut in borrowing costs would have further driven away rupee investors,'' said Vinod Kumar Khanna, general manager of treasury at state-owned Union Bank of India in Mumbai. ``With global equity markets under intense pressure, the rupee will weaken further.'' The rupee, which was made partly convertible in 1993, slid as much as 0.7 percent to 50.165 per dollar, an all-time low, before trading at 49.945 as of 1:04 p.m. in Mumbai, according to data compiled by Bloomberg. Khanna didn't give a forecast. The currency has lost more than 21 percent versus the dollar this year and is the second-worst performer in Asia after South Korea's won. It is headed for its worst year since 1991, when the nation devalued it by an average 20 percent against four major currencies to help boost exports. Shunning Risk Overseas funds are shunning emerging-market assets as Pakistan, Hungary, Iceland, Ukraine and Belarus approached the International Monetary Fund for financial aid. Russia faces possible cuts to its sovereign debt rating and Argentina said this week that it will seize its national pension funds. Sales of Indian shares by overseas investors this year exceeded purchases by a record $12.2 billion as the benchmark Bombay Stock Exchange Sensitive Index, or Sensex, slid more than 55 percent. The gauge is headed for its first annual decline since 2001. The MSCI Asia Pacific Index of regional shares tumbled as much as 6.2 percent today, touching the lowest since 2004. The central bank today left the repurchase rate at 8 percent, four days after slashing it by 1 percentage point. Asia's third-biggest economy faces a ``temporary slowdown'' in the year ending March 31, Prime Minister Manmohan Singh said on Oct. 20. Growth averaged almost 9 percent in the five years through March 31, the fastest for such a period since India gained independence from Great Britain in 1947. To contact the reporter on this story: Anoop Agrawal in Mumbai at aagrawal8@bloomberg.net.

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