Nov. 23 (Bloomberg) -- India's rupee fell for a sixth day, its longest losing streak in 15 months, after overseas investors increased sales of local equities.

The currency pared earlier gains, heading for the biggest weekly decline in more than a month, after data from the stock market regulator showed funds based abroad sold the most Indian shares since Oct. 19. It declined from near the highest in 9 1/2 years on concern oil prices near a record will boost India's import costs, inflating its trade deficit.

``The rupee could experience weakness in the wake of foreign institutional investment outflows from the system,'' said Namrata Padhye, an analyst at Mumbai-based IDBI Gilts Ltd. ``Foreign institutional investors were net sellers in the equity market over the past fortnight.''

The local currency weakened 0.1 percent to 39.565 against the dollar as of 11:51 a.m. in Mumbai, according to data compiled by Bloomberg. It reached the lowest intraday level since Oct. 26. The currency declined the most since Oct. 22 yesterday.

The rupee is Asia's second-best performer this year, gaining 12 percent. It may rise to 39.25 by year-end and 39 by the end of March 2008, according to the median estimate in a Bloomberg News survey.

Overseas funds sold $550.9 million more Indian shares than they bought on Nov. 21, according to the Securities & Exchange Board of India. Global investors made net sales worth $951.9 million this month, after making net purchases of $5.1 billion in October and $4 billion in September. The Bombay Stock Exchange's Sensitive Index has lost 5.1 percent this week.

To contact the reporters on this story: Anil Varma in Mumbai at avarma3@bloomberg.net.

Last Updated: November 23, 2007 01:22 EST