MUMBAI: The rupee slumped 49 paise to close at a record low of 92.89 against the US dollar on Wednesday, weighed down by a stronger greenback and sustained FII outflows.

Elevated crude oil prices in global markets amid intensifying conflict in West Asia further dampened sentiments, forex traders said.

At the interbank foreign exchange, the local unit opened at 92.42 against the greenback and traded in the range of 92.41-92.89 before closing at its record low of 92.89, sharply down by 49 paise from its previous close.

Earlier on Tuesday, the domestic 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 banks meetings... as the Reserve Bank of India allowed the 92.50 level to be breached," Anil Kumar Bhansali, Head of Treasury and Executive Director, Finrex Treasury Advisors LLP, said.

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.05 per cent higher at 99.62.

Brent crude, the global oil benchmark, was trading flat at USD 103.4 per barrel in futures trade.

On the domestic equity market front, the Sensex settled higher by 633.29 points, or 0.83 per cent, to 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.