The Indian currency made a spirited come back this week from its historic lows and ended up with minor losses against the US dollar after the finance ministry assured of steps to avert its fall to "unreasonable levels".
Cutting steeper losses, the gusty rupee ended at 71.84, down by 11 paise.
It lost a whopping 193 paise in its third straight weekly decline.
The Indian unit collapsed to a historic intra-day low of 72.92 which dealers attributed to overreaction and absence of government measures to support the falling currency.
However, RBI intervention in the foreign exchange market ensured the rupee didn't slide further after the rupee took another plunge to threatened to breach the 73-mark.
The rupee got a shot in the arm after the government said all steps will be taken to ensure the domestic currency does not depreciate to "unreasonable levels", amid reports that Prime Minister Narendra Modi will take stock of the economic situation over the weekend.
A combination of positive macro-related developments after the country's industrial production grew at 6.6 per cent in July and retail inflation cooled to a 10-month low of 3.69 per cent in August even WPI-based inflation eased to a four-month low of 4.53 per cent in August, collaborating to rupee's strength.
The Indian currency has been caught in a free fall for last few sessions and tagged among the worst performing currencies in Asia having weakened by a steep 13.81 per cent since the beginning of the year.
Asia's third-largest economy is battling with a deluge of headlines covering from a range of fundamental concerns to deteriorating macro environment against the grim backdrop of surging global crude prices and sustained capital outflows.
Besides, multiple factors including - inflation fears and a widening current account deficit along with the escalation in global trade war tensions.
This year has also seen a sustained outflow of foreign funds from equity and debt markets.
The benchmark bond yield also rallied substantially by 10 bps to end at 8.13 per cent.
On the energy front, crude prices pulled back on amid concerns additional US.
tariffs would be placed on China, trading mixed after a rally triggered by worries of more sanctions on Iran.
The global benchmark Brent ended at 78.09 a barrel, posting a 1.7 per cent weekly rise after surging to its highest since May 22 at USD 80.13.
Meanwhile, country's forex reserves drifted below the USD 400-billion mark for the first time in over a year - declining by USD 819.5 million to USD 399.282 billion for the week to September 7, RBI data showed.
This is the second consecutive week of major fall in the reserves which indicates that the central bank has been selling the greenback to stem the currency's collapse.