Mumbai: The rupee fell to 43.51/52  a dollar, its lowest level against the US currency in more than 17 months, weakened by a falling stock market and a stronger dollar.

The domestic currency was at 43.51/52 per dollar – the lowest level it reached since 2 April 2007, and down 1.2 per cent from last week's close of 43.01/02 a dollar. The partially convertible rupee also hit an intraday low of 43.70 a dollar, the lowest level since 29 March 2007.

The fall has been aided by speculative purchases expecting an increase in refinery demand after the commissioning of Reliance Industry's second refinery at Jamnagar in Gujarat.

The rupee was down 1.3 per cent at 43.5985 per dollar in evening trade.  The rupee had slid for five or more consecutive days in a row during the period ended 28 November. It has fallen by 3.5 per cent in the last five sessions and is down 9.6 per cent in 2008. It rose more than 12 per cent in 2007.

The dollar, however, fell marginally helping oil prices to improve. The euro strengthened a notch to $1.4706 and the dollar was still above 110 Japanese yen but off earlier highs.

There was heavy dollar buying and traders and exporters expect the rupee to remain volatile amidst a global market shake-up. The Reserve Bank is expected to have sold over $7 billion in intervention in June alone.

The euro has fallen nearly six per cent against the dollar in two weeks on concerns of an economic slowdown although it made moderate gains today.