The rupee declined 14 paise to close at 75.94 against the dollar on Thursday, pressured by surging crude oil prices amid intensifying conflict between Russia and Ukraine.

Persistent foreign capital outflows and subdued domestic equity markets also affected market sentiment, forex dealers said.

At the interbank foreign exchange market, the rupee opened strong at 75.76 against the dollar but soon entered the negative territory as investors turned towards safe-haven assets.

During the session, it swung between a high of 75.60 and a low of 75.98.

The local unit finally settled at 75.94 against the dollar, down 14 paise from the previous close.

Oil prices climbed to almost $120 a barrel on Thursday, their highest in nearly a decade, as sanctions disrupted Russian oil sales but the rally lost some of its fizz on rising prospects for an Iran nuclear deal that could add extra supplies.

Benchmark Brent rose to $119.84 a barrel, the highest since 2012, with additional support coming from data showing US crude stockpiles had hit multi-year lows. By 1416 GMT, it had slipped back to $112.75 a barrel.

“The new wave of commodity price increases will further pressurise inflation. India will be susceptible to secondary and tertiary impact of inflation in commodities like fuel, coal, edible oils, fertilizers etc. This in turn will be an issue that the MPC would have to contend with when it meets in April,” a research report by Bank of Baroda said.

Moody's and Fitch on Thursday downgraded Russia's sovereign rating to 'junk' grade.

While Moody's Investors Service downgraded Russia's long-term issuer and senior unsecured (local-and foreign-currency) debt ratings to 'B3' from 'Baa3', Fitch pulled down the rating on the country to 'B' from 'BBB', putting it on 'Rating Watch Negative'.