Indian rupee eases on outflow concerns

(Updates to early deals)

MUMBAI, July 15 (Reuters) - The Indian rupee INR=IN backed further away from a two-week high on Tuesday, on worries that foreign funds would pull more money out of local stocks amid weak Asian markets.

At 10:14 a.m. (0444 GMT), the partially convertible rupee was at 43.10/11 per dollar, 0.42 percent weaker than Monday's close of 42.92/93. It hit a 15-month low of 43.50 early this month.

"Asian cues are not very good and that should keep the undertone of the rupee weak for the day," said L.V. Prasad, head of currency trading at Mumbai-based IndusInd Bank.

One-month offshore non-deliverable forward contract PNDF were at 43.37/47, weaker than the onshore rate.

Indian shares fell 3 percent in opening deals, after concerns about the fallout from a credit crisis roiled world markets, with Reliance Industries (RELI.BO: Quote, Profile, Research) and ICICI Bank (ICBK.BO: Quote, Profile, Research) leading the losses. [.BO].

Asian stocks fell as investor confidence waned in the region's financial sector, which faces high inflation, a stricter lending environment and massive volatility from overseas markets. See: [ID:nSP255308].

Foreign funds have sold a net $6.9 billion of Indian shares so far this year, and have contributed to a more than 8 percent drop in the rupee's value against the dollar.

But traders said dollar inflows from a pharmaceutical firm takeover may cushion the rupee from sharp falls.