The Reserve Bank of India is selling US dollars in both onshore and offshore foreign exchange markets to prop up the rupee, according to multiple traders familiar with the matter who requested anonymity as they are not authorized to speak publicly.

The Indian currency rose 0.1% against the greenback to 95.0437, while the one-month dollar-rupee non-deliverable forward contract trimmed its losses to 95.21 after sliding as much as 0.2% earlier.

These interventions come against the backdrop of Brent crude extending gains for a second straight session, as renewed US-Iran hostilities heighten concerns over the security of energy shipments through the Strait of Hormuz.

As a major oil importer, higher crude prices risk widening India's trade deficit and fanning inflationary pressures.