Mumbai: The rupee fell to a record low past 50.60 against the US dollar hammered by continuous outflow of capital and record offloading of shares on the stock markets.

The rupee started weaker at 50.55 against the dollar and was at 50.52/53 against the dollar, but still down 0.4 per cent from the previous day's close. The rupee later hit a record low of 50.65 to a dollar.

The previous time the rupee touched 50.60 against the dollar was on 20 November, when it was more than 22 per cent down over the year.

In the afternoon trade, the domestic currency was trading at 50.53/57 to a dollar, off the record low of 50.65. The rupee had closed at 50.30/32 on Monday.

Dealers said market sentiment has been weighed down by rising demand for the US currency and expectation of a further fall in domestic stock prices.

State-run banks were seen selling dollar at Rs50.60 on behalf of the Reserve Bank of India, dealers said.

The country's main share index, the BSE Sensex, was more than 2 per cent lower, caught in the sell-off as the economic outlook deteriorated. .

Foreign funds have so far sold around $13.7 billion worth of shares in 2008, after buying a record $17.4 billion last year.