Mumbai, Mar 27 (PTI) The rupee slumped by a massive 89 paise to close at a historic low of 94.85 against the US dollar on Friday, as concerns of higher crude oil prices weighed heavily on the currency and overall macroeconomic outlook.

Forex traders said the rupee is succumbing to the pressure exerted by continued sales by foreign investors and a stronger greenback amid uncertainties over the West Asia conflict.

Sustained dollar demand and energy-led inflation risks are keeping the rupee under stress, they said, adding that bias remains weak unless crude prices show a meaningful correction.

At the interbank foreign exchange, the rupee opened at 94.18 and breached the 94.50-mark for the first time. The domestic unit settled for the day at 94.85 against the US dollar, down 89 paise from its previous close.

The rupee had slumped 20 paise to close at a record low of 93.96 against the US dollar on Wednesday.

Stock, forex, commodity, and bullion markets remained closed on Thursday on account of Ram Navami.

Rupee continued its sharp weakness, as rising crude prices intensify pressure on India’s import bill. The concern of higher crude for a prolonged period is weighing heavily on the currency and overall macro outlook, said Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities.

"Sustained dollar demand and energy-led inflation risks are keeping the rupee under stress. Technically, 94.00 now acts as key resistance, while the next crucial support is seen near 95.00. Bias remains weak unless crude prices show a meaningful correction," Trivedi added.

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.04 per cent higher at 99.94.

Brent crude, the global oil benchmark, was trading at USD 110.92 per barrel, up 2.69 per cent, in futures trade.

On the domestic equity market front, the Sensex crashed 1,690.23 points, or 2.25 per cent, to 73,583.22 points, while the Nifty fell 486.85 points, or 2.09 per cent, to 22,819.60.

Foreign institutional investors sold equities worth Rs 4,367.30 crore on a net basis on Friday, according to exchange data.

India's forex reserves dropped by USD 11.413 billion to USD 698.346 billion during the week ended March 20 due to a sharp decrease in gold reserves, the RBI said on Friday.

In the previous reporting week, the overall reserves had dropped USD 7.052 billion to USD 709.759 billion.

The Centre is planning to mobilise Rs 8 lakh crore through dated securities during the April-September period of 2026-27 to fund the revenue gap, the finance ministry said on Friday.

Gross Market Borrowings in BE 2026-27 were Rs 17.20 lakh crore. Since the Budget presentation, switches of G-Sec were conducted, reducing Gross Market borrowing to Rs 16.09 lakh crore, it said. PTI TRB DRR