The currency ended Monday at 95.0875 per dollar in Mumbai, down 0.18%, as maturing NDF positions and higher crude prices lifted dollar demand.
Brent crude rose to nearly $110 a barrel amid Iran war tensions, while importer hedging, modest portfolio inflows and local election results also shaped trading.
Reuters has reported the central bank is weighing steps to attract dollar inflows, as persistent capital outflows continue after overseas investors sold about $20 billion of Indian assets this year.
Is India's 2013 crisis playbook enough to save the rupee from the Iran war's economic fallout?
Foreign investors have sold $20 billion in Indian assets. Is this a panic sale or a smart move?