The rupee slumped 23 paise to close at a record low of 92.63 (provisional) against the US dollar on Wednesday, pressured by a strengthening greenback and sustained foreign institutional investor (FII) outflows. 

Forex traders said elevated crude oil prices, driven by escalating tensions in West Asia, further weighed on market sentiment. 

At the interbank foreign exchange, the domestic currency opened at 92.42 against the dollar and largely traded in a narrow range of 92.41–92.48 during the session. However, it came under pressure in late trade, slipping to an all-time closing low of 92.63. 

During the day, the rupee also touched a record intra-day low of 92.65. On Tuesday, the currency had hit its previous intra-day low of 92.47 before settling at a then record closing low of 92.40. 

Meanwhile, the dollar index, which measures the greenback against a basket of six currencies, was marginally higher at 99.62. 

FII outflows continued to exert pressure, with foreign investors selling equities worth ₹4,741.22 crore on a net basis on Tuesday, according to exchange data. 

Easing supply concerns weigh on crude prices 

Crude oil prices fell by ₹137 to ₹8,734 per barrel in futures trade on Wednesday, as easing supply concerns amid ongoing geopolitical tensions weighed on the market. 

On the Multi Commodity Exchange (MCX), crude oil for March delivery declined ₹137, or 1.54%, to ₹8,734 per barrel, with a business turnover of 5,244 lots. The April contract also eased ₹98, or 1.11%, to ₹8,746 per barrel in a turnover of 14,676 lots.  

Analysts said crude prices remained volatile as markets balanced geopolitical risks against emerging signs of improved supply conditions in the region.  

In the global market, Brent crude futures for May delivery slipped 0.62% to $102.78 per barrel, while West Texas Intermediate (WTI) crude for the same contract fell 1.56% to $94.04 per barrel in New York. 

Equity markets rebound despite currency weakness 

Despite the weakness in the rupee, domestic equity markets have staged a recovery after a sharp correction earlier this month due to geopolitical tensions. 

Benchmark indices, the BSE Sensex and Nifty50, have rebounded more than 2,100 points and 600 points, respectively, over the past three sessions. The rally has added about ₹9.5 lakh crore to investor wealth, taking the total market capitalisation of BSE-listed companies to ₹438.88 lakh crore. 

The Sensex jumped 633.29 points, or 0.83%, to close at 76,704.13 while the Nifty50 gained 196.65 points, or 0.83%, to end at 23,777.80.