Mumbai, March 18 The rupee declined by 18 paise to hit a record low of 92.58 against the US dollar on Wednesday, amid a strengthening dollar overseas and continued outflows of foreign capital.
Elevated crude oil prices in global markets, coupled with the intensifying conflict in West Asia, further dampened sentiment, forex traders said.
At the interbank foreign exchange market, the local currency opened at 92.42 against the dollar and remained in the range of 92.46-92.47 before falling to 92.58.
The domestic currency on Tuesday hit its previous intra-day low of 92.47 against the dollar, before settling at an all-time low of 92.40.
"The rupee hit a new low ahead of the major central banks meetings... as the Reserve Bank of India allowed the 92.50 level to be breached," said Anil Kumar Bhansali, Head of Treasury and Executive Director, Finrex Treasury Advisors LLP.
Meanwhile, the dollar index, which gauges the strength of the dollar against a basket of six currencies, was trading 0.05 per cent higher at 99.62.
Brent crude, the global oil benchmark, was trading 0.19 per cent lower at USD 103.2 per barrel in futures trade.
On the domestic equity market front, the Sensex was trading higher by 719.77 points, or 0.95 per cent, at 76,790.61, while the Nifty also rose sharply by 215.75 points, or 0.91 per cent, at 23,796.90.
Foreign institutional investors sold equities worth Rs 4,741.22 crore on a net basis on Tuesday, according to exchange data.
