July 19 (Bloomberg) -- India’s rupee fell the most in three weeks on concern investors will cut holdings of emerging-market assets after the latest reports on U.S. consumer confidence and inflation signaled the global economic recovery is faltering. The currency weakened for a second day after a loss of 1.1 percent in the MSCI Asia Pacific excluding Japan Index of regional shares. A gauge of consumer sentiment slumped to an 11- month low and consumer prices held at a 44-year low in the world’s largest economy, separate reports from the U.S. showed on July 16. The rupee also declined on speculation local importers will buy dollars to settle month-end bills. “Concern still lingers about the sustainability of global economic growth and that’s fueling some risk aversion among investors,” said Sanjay Arya, treasurer at state-owned Bank of Maharashtra in Mumbai. “A pick-up in dollar demand from importers before the end of the month also may put pressure on the rupee.” The rupee retreated 0.5 percent, the most since June 29, to 47.00 per dollar as of 10:04 a.m. in Mumbai, according to data compiled by Bloomberg. It touched 47.085 earlier, the weakest level since July 7. The currency may trade between 46.75 and 47.35 in the coming days, Arya predicted. Offshore forward contracts indicated the rupee will trade at 47.59 to the dollar in three months, compared with expectations for a rate of 47.35 at the end of last week. Forwards are agreements to buy or sell assets at a set price and date. Non-deliverable contracts are settled in dollars. --Editors: Sandy Hendry %INR To contact the reporter on this story: Anil Varma in Mumbai at avarma3@bloomberg.net To contact the editor responsible for this story: Sandy Hendry at shendry@bloomberg.net.

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