Mumbai, March 18 The rupee plunged by 49 paise to close at a record low of 92.89 against the US dollar on Wednesday, weighed down by a stronger dollar and continued outflows from foreign investors.
Rising crude oil prices in global markets, amid escalating conflict in the Middle East, further dampened sentiment, forex traders said.
At the interbank foreign exchange market, the local currency opened at 92.42 against the dollar and traded in the range of 92.41-92.89 before closing at its record low of 92.89, down by a sharp 49 paise from its previous close.
Earlier on Tuesday, the domestic currency hit its previous lowest intra-day level 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 bank 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 measures the strength of the dollar against a basket of six currencies, was trading up by 0.05 per cent at 99.62.
Brent crude, the global benchmark for oil, was trading flat at USD 103.4 per barrel in futures trade.
On the domestic equity market front, the Sensex closed higher by 633.29 points, or 0.83 per cent, at 76,704.13, while the Nifty also rose sharply by 196.65 points, or 0.83 per cent, to 23,777.80.
Foreign institutional investors sold equities worth Rs 2,714.35 crore on a net basis on Wednesday, according to exchange data.