India’s rupee fell to a two-week low on speculation a deepening global economic slump is reducing demand for the nation’s assets and exports. The rupee weakened for a fourth day, taking its decline from a 2 1/2-month high touched Dec. 19, to almost 5 percent. India’s benchmark share index slid to the lowest level in two weeks yesterday. Asia’s third-largest economy may expand as little as 7 percent in the year through March, the slowest pace since 2003, the finance ministry said in its mid-year review yesterday. “I see the rupee staying under pressure to weaken and won’t be surprised if we revisit the 50 level,” said Mohan Shenoi, treasurer at Kotak Mahindra Bank Ltd. in Mumbai. “The stock market remains weak and export orders are getting canceled due to the global economic slowdown.” The rupee declined as much as 0.9 percent to 49.19 per dollar before trading at 49.095 as of 9:38 a.m. in Mumbai, according to data compiled by Bloomberg. Its 19.8 percent loss this year is the second-worst performance among the 10 most- active Asian currencies outside Japan after South Korea’s won. The Bombay Stock Exchange’s Sensitive Index, or Sensex, has lost 52 percent this year, headed for the biggest annual decline on record and the first since 2001. Overseas investors sold a record $13.1 billion more local shares than they bought this year, according to data released by the Securities and Exchange Board of India. Indian exports dropped 12.1 percent in October to $12.8 billion from a year earlier, the first decline since 2001, government data showed on Dec. 1. To contact the reporters on this story: Anil Varma in Mumbai at avarma3@bloomberg.net.

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