Special Correspondent

MUMBAI: The rupee on Tuesday fell to its lowest level in nearly eight months as escalating worries about the euro zone's banking system hit global markets. This has boosted demand for dollars across the board. The rupee closed at 47.71/72 a dollar on Tuesday after hitting 47.75, its weakest since October 1, 2009. It closed at 46.98/99 on Monday. Last week, the rupee had fallen by 3.8 per cent. Foreign institutional investors (FIIs) have withdrawn nearly $2 billion from Indian stock markets so far in May.

This has led to the sharp fall of rupee.