Mumbai: The rupee on Tuesday slid 47 paise to settle at a record low of 72.98 against the dollar because of surging crude oil prices and escalating trade war worries.

The stock markets, too, were not spared with the BSE benchmark Sensex extending losses for the second session by plummeting 295 points to close at an over one-month low of 37291 owing to hectic selling in financial and auto stocks.

The broader NSE Nifty fell over 98 points to crack below the 11300-mark.

Panic dollar demand from importers and speculative traders sent the local currency sinking to a historic low of 72.99 in late afternoon deals with very little chance of RBI intervention.

A sharp spike in international crude oil prices weighed on the traders towards the tail-end session even as the dollar fell to seven-week lows after US President Donald Trump announced fresh 10 per cent tariffs on Chinese imports.

Trump on Monday night announced additional 10 per cent duties on Chinese imports worth $200 billion.

The benchmark Brent crude futures were up $1.14 a barrel to $79.19 a barrel, after hitting a high of $79.37 in early Asian trade.

The stubbornly high global crude oil prices are opening up a can of worms to heightened inflation risks and likely to disrupt government's fiscal maths along with the deteriorating global financial conditions.