The Indian Rupee has crossed the mark of 50 against the US dollar for the first time in more than two years as domestic shares continued to fall on the second consecutive day.

Many believe that the central bank in the country, the Research Bank of India's raising of interest rate to curb inflation will effect economic growth. The Reserve Bank of India might increase costs for borrowing the country, according to a survey of economists by Bloomberg.

The rupee declined to its lowest level since April 2009 to touch Rs 50 against the US Dollar on Friday in early trade on the Interbank Foreign Exchange due to indications of an outflow of foreign funds from domestic shares. The rupee has fallen 0.4 percent today and 2 percent this week to 50.0250 per dollar. The currency has declined 10.8 percent this year.

The fall was mainly due to the outflow of money for risk aversion and the American currency's rise against most Asian currencies. The dealers said that the fall came as the Dollar strengthened against the Asian currencies and the equity market had a weak opening. The high demand from importers and some banks also contributed to the weakening of the rupee against the dollar.