Rupee looses ground to Dollar

Rupee fell 1%  on Thursday to its lowest level in nearly two months, on worries about capital outflows as stock markets across Asia fell on global credit squeeze concerns.

At 9:35 am, the partially convertible rupee was at 41.15/16 per dollar - its weakest since late June, and compared with 40.75/76 at the previous close.

With investors reducing exposure to risky assets across the region, emerging market currencies such as the rupee may be the hardest hit as capital inflows have been a key support for the local currency, analysts said.