The Indian rupee fell on Thursday, weighed down by a more than 1 percent drop in domestic shares and the euro's slide in Asia.
A surge in Brent crude globally is also fanning fears of increased demand for dollars by India, which imports about 80 percent of its oil requirement.
At 10:17 a.m. (0447 GMT), the rupee was at 49.16/17 to the dollar, weaker than Wednesday's close of 49.0050/0150.
"Euro is nursing heavy losses and equities are in the red," said Paresh Nayar, head of fixed income and forex trading at First Rand Bank.
The rupee should find support from a government share sale in Oil and Natural Gas Corp on Thursday that aims to raise at least $2.5 billion.
"Robust foreign fund inflows of around $1 billion, between yesterday and today, are expected for the ONGC stake sale as there is strong foreign institutional interest," Nayar said.
Foreign funds have moved about $12 billion into Indian stocks and debt so far in 2012.
The euro fell in Asia as investors cut bullish positions after key events including the European Central Bank's cash injection passed without surprise.
One-month offshore non-deliverable forward contracts for the rupee were at 49.14.
In the currency futures market, the most-traded near-month dollar-rupee contracts on the National Stock Exchange, the MCX-SX and the United Stock Exchange all at around 49.48, on a total volume of $587 billion.
