Dec. 20 (Bloomberg) -- India's rupee headed for a weekly loss on concern global funds are dumping local equities following a decline in the benchmark stock index.

The currency may snap three weeks of gains as the latest data from the stock market regulator showed overseas investors sold $607.3 million more of Indian shares than they bought on Dec. 18, the most in two months. The Bombay Stock Exchange Sensitive Index, or Sensex, fell 4.7 percent this week, the biggest drop in more than a month.

The rupee weakened 0.5 percent this week to 39.545 against the dollar as of 9:11 a.m. in Mumbai, according to data compiled by Bloomberg. Financial markets will be closed tomorrow for a public holiday.

To contact the reporters on this story: Sam Nagarajan in New Delhi at samnagarajan@bloomberg.net

Last Updated: December 19, 2007 22:56 EST