According to traders familiar with the matter, the Reserve Bank of India is selling US dollars in the onshore foreign exchange market to support the Indian rupee, as the currency faces pressure from high oil prices. The traders requested anonymity as they are not authorized to speak publicly.

The USD/INR pair was largely unchanged at 95.4037. Most Asian currencies declined on Wednesday due to the rise in oil prices.

Brent crude oil prices climbed more than 1% to around $90 per barrel, extending gains for a sixth consecutive session, amid ongoing uncertainty over the reopening of the Strait of Hormuz. As India is a major crude oil importer, higher oil prices widen the country's trade deficit and exacerbate inflation.

Over the past few weeks, the Indian central bank has been regularly intervening in the foreign exchange market. Recent inflows from dollar deposit schemes have boosted the central bank's foreign exchange reserves.