The rupee opened under pressure on September 16 before recovering to around 95.87 per dollar, with traders telling Reuters that the Reserve Bank of India likely intervened through state-run banks.
The pressure is coming from two directions. Brent crude remains above $100 a barrel, raising India's import bill, while expectations of a US Federal Reserve rate increase are supporting the dollar and global bond yields.
For India, the immediate issue is volatility rather than any single exchange-rate number. A weaker rupee can make imported energy more expensive, while aggressive currency defence can affect domestic liquidity and reserves. The RBI generally says it does not target a fixed level and intervenes to contain disorderly moves.
