The Indian national currency continued its downward slide on Wednesday recording a fall of 0.5 percent to touch its lowest level in 32 months.

The continuing demand for dollars from importers, a weaker Euro and weal demand in the domestic share markets put huge pressure on the rupee. The partially convertible rupee was at 50.90/91 per dollar at the time of reporting, which is its lowest level since March 31, 2009.

Market dealers expected the rupee to touch 51 per dollar soon over continued concerns over the spreading Eurozone debt crisis. The domestic oil importers will keep the demand for dollar high for requirements like trade deficit, high inflation point towards a weaker rupee.

The Indian rupee has fallen 4.4 percent so far this month and declined by nearly 12.2 percent this year. The benchmark Sensex of the Bombay stock Exchange was down more than 1 percent.

The euro was at $1.3446, lower from $1.3515 at the end of Rupee trading hours on Tuesday. The Euro is falling due to against the dollar and the yen as the euro zone debt crisis is threatening to spread to larger economies like France.

The index of the dollar against six major currencies was at 78.322 points from 77.995 points.