The Indian rupee weakened marginally over the past week, losing approximately 18 paise, or 0.2 per cent, to close at 94.74 against the US dollar.
The move marks a reversal of some recent momentum, driven by a firmer greenback that has overshadowed the supportive effect of softer crude oil prices.
Market participants are closely monitoring whether the recent decline in commodity prices will provide enough tailwind to counteract the broader strength of the dollar.
While lower oil prices typically ease import bills and support emerging market currencies, the current dollar regime has proven resilient, limiting the rupee's ability to recover ground.
The currency's trajectory this week hinges on the durability of crude price declines and the direction of US dollar sentiment.
Improved foreign inflows have provided some underlying support, but the immediate pressure from the greenback remains the dominant factor in the near-term outlook.