According to traders familiar with the matter, the Reserve Bank of India has been actively selling US dollars in the domestic foreign exchange market to provide support for the rupee. These sources requested anonymity as they were not authorized to discuss the transactions publicly.

The USD/INR pair edged 0.1% higher to 96.0963. Meanwhile, the one-month non-deliverable forward rate for the dollar-rupee pair briefly climbed 0.2% before stabilizing at 96.37.

These intervention measures come in the wake of the Federal Reserve's widely anticipated interest rate hike on Wednesday. The move by US policymakers has diminished the relative appeal of bonds in emerging markets such as India, as higher US interest rates typically prompt capital outflows from these economies.

The central bank has maintained a steady presence in the currency market over the past several weeks, consistently intervening to manage volatility. The rupee's depreciation has now exceeded 6% this year, making it one of the weaker performers among Asian currencies.