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The rupee plunged 64 paise to close at a record low of 93.53 against the US dollar on Friday, pressured by sustained foreign fund outflows and a sharp rise in crude oil prices amid escalating geopolitical tensions.

The local currency opened at 92.92 in the interbank foreign exchange market and quickly breached the 93-per-dollar mark for the first time. It continued to weaken through the session before settling at its lowest-ever closing level.

The fall comes after the rupee had already hit a previous record low of 92.89 on Wednesday. Forex markets were closed on Thursday for Gudhi Padwa.

Currency traders said the rupee is facing significant pressure from a combination of rising oil prices and a broader shift towards risk aversion among global investors. Elevated geopolitical uncertainty — particularly linked to the ongoing Iran conflict — has pushed energy prices higher, raising concerns about India’s trade deficit and inflation outlook.

“The rupee resumed its downward trend after the holiday, hit by a double blow of persistent foreign fund outflows and surging crude oil prices,” said Dilip Parmar, senior research analyst at HDFC Securities.

He added that the dollar-rupee pair remains technically strong, with the next resistance level seen around 93.75.

The dollar index, which measures the greenback against a basket of major currencies, was up 0.37 per cent at 99.60, reflecting continued global demand for the US currency.

Brent crude, the global oil benchmark, hovered around $108.6 per barrel. Analysts pointed out that supply concerns have intensified as tensions in West Asia disrupt shipping routes, particularly around the Strait of Hormuz — a key artery for global energy flows.

On the domestic front, equity markets showed some recovery after the previous session’s decline. The Sensex rose 325.72 points to 74,532.96, while the Nifty gained 112.35 points to close at 23,114.50.

However, foreign institutional investors (FIIs) remained net sellers, offloading equities worth Rs 5,518.39 crore during the session, according to exchange data.

Meanwhile, India’s forex reserves declined by $7.052 billion to $709.759 billion for the week ended 13 March, the Reserve Bank of India said. This follows a sharper drop of $11.683 billion in the previous week. The reserves had touched an all-time high of $728.494 billion at the end of February before the recent slide.

With oil prices volatile and capital flows uncertain, analysts expect continued pressure on the rupee in the near term.