The Indian rupee recorded its steepest weekly decline in four months on September 11, falling about 1.1% over the week and ending near 95.55 per dollar, according to Reuters.
The pressure has come from oil prices above $100 a barrel, higher global bond yields and demand for dollars. Because India imports most of its crude, an oil shock can widen the trade deficit, raise inflation risks and increase demand for foreign currency.
The RBI has intervened in currency and liquidity markets, but the policy challenge is broader than defending a particular exchange-rate level. It must also keep domestic liquidity, inflation expectations and monetary-policy transmission aligned.