The Indian rupee weakened to 96.28 per dollar on Friday, marking a roughly 1% decline for the week and its sharpest weekly loss since May.
The currency remains under pressure as traders assess the impact of elevated crude oil prices and the extent of intervention by the Reserve Bank of India (RBI) to stabilize the exchange rate.
This depreciation brings the rupee closer to its all-time low of 96.96, established in May.
The move reflects ongoing vulnerability in emerging market currencies facing high energy import bills.
With oil prices remaining a key driver of the current account deficit, any further spikes in crude costs could exacerbate selling pressure on the rupee, forcing the central bank to weigh inflation risks against currency stability.
Market participants are closely monitoring the RBI's response.