The Indian rupee strengthened slightly in early Wednesday trade, appreciating 5 paise to reach 96.11 against the US dollar.
The modest gain reflects a tug-of-war between a weakening US dollar and headwinds from elevated crude oil prices.
Higher energy costs and continued outflows from foreign institutional investors prevented a sharper recovery for the local currency.
Despite the supportive backdrop from a softer greenback, the rupee's advance was contained by persistent import bill pressures linked to global oil markets.
This session follows a period of volatility for the rupee, which had previously seen gains of 19 paise to 95.16 in early Friday trade and a 26-paise advance to 94.90 on Thursday.
The recent trajectory suggests a fragile stabilization, with the currency oscillating between dollar-driven strength and commodity-driven weakness.