By Anil Varma Nov. 12 (Bloomberg) -- India's rupee fell for a second day on speculation a deepening global economic slump is damping demand for emerging-market assets. The currency dropped to the lowest level in more than a week as Asian equities declined. The overseas forwards market for rupees shows investors increased bets for how far the currency will weaken over the next month. All of the 10 most-traded Asian currencies outside Japan fell. ``The trend is broadly negative for equity indexes and currencies across Asia as concerns about global growth dominate,'' said Vikas Babu, a foreign-exchange trader at state- owned Andhra Bank in Mumbai. ``The rupee could weaken further in the coming days.'' The rupee weakened 1 percent to 48.6050 per dollar as of 9:42 a.m. in Mumbai, according to data compiled by Bloomberg. It fell 1.5 percent yesterday, the most in almost two months. The currency slid 19 percent this year, heading for its steepest annual loss since 1991. The currency will fall as low as 48.80 today, Babu said. The MSCI Asia Pacific Index of regional shares retreated 1.9 percent, taking its losses in 2008 to 46 percent. India's benchmark Sensitive Index fell 6.6 percent yesterday. Funds based abroad sold a record $12.6 billion more Indian equities than they bought this year, data from the Securities and Exchange Board of India show. To contact the reporters on this story: Anil Varma in Mumbai at avarma3@bloomberg.net.

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