The rupee fell to 48 against the dollar, its weakest in nearly 2 years, early on Wednesday as worries Europe could be heading for another banking crisis rattled global markets.

People are buying dollars as if there is no tomorrow, said a foreign exchange dealer with a private-sector bank.

At 9:09 a.m. (0339), the partially convertible rupee was at 47.93, weaker than Tuesday's close of 47.59/60. It had hit 48, a level last reached on Sept. 29, 2009.