The rupee closed at its all-time low of 50.02/03, losing 35 paise against the US dollar, as the continuing outflow of capital boosted demand for the greenback and hammered equities.

At 50.02/03 per dollar the rupee is 0.7 per cent weaker than Tuesday's 49.66/67. It is also its lowest against the dollar since 27 October, when it hit a record low of 50.29 against the US currency in intra-day trade.

The Indian unit, which had been on a losing spree for most of the current year, had first breached the crucial 50-a-dollar level on 24 October.

The rupee has fallen by 101 paise or 2.06 per cent over the past two days and is down Rs10.61, or 26.92 per cent, since January this year.

One-month offshore non-deliverable forward contracts were quoting at 50.80/95, 1.5 per cent weaker than the onshore spot rate.

Overseas investors have withdrawn over $13 billion from Indian stock markets so far in 2008. The selloff in the market today pushed the benchmark stock index, the Sensex, down by another 163 points, or 1.83 per cent to 8,773.78 points, extending the losses to sixth day in a row.

Dealers said there was strong demand for the US currency from oil refiners for their import payments against very little dollar sales.

Reports said the Reserve Bank intervened through state-run banks, selling dollars to halt the rupee's fall, but said volumes were not large.

The RBI fixed the reference rate for the dollar at Rs49.74 and for the single European currency at Rs62.78.