The rupee slipped 3 paise to ₹95.99 per dollar, a 0.03% slide from yesterday’s close of ₹95.96. NEWPAR The move follows the Federal Reserve’s 25‑basis‑point rate hike to 5.25%, its first increase since March 2023, and the Fed’s hint at a possible further tightening this year—details released in the Wednesday press brief. NEWPAR As a result, the dollar index breached the 100 mark, peaking at 101.3, its highest level since early March. The index’s rise is largely driven by the Fed’s policy shift and a rally in U.S. Treasury yields. NEWPAR Brent crude stayed near $107.51 a barrel, keeping import‑cost pressure on the rupee high. India’s net crude imports account for about 30% of total oil imports, so even modest price swings translate into dollar‑denominated outflows. NEWPAR Foreign institutional investors sold ₹2,032.61 crore of Indian equities on Wednesday, according to RBI foreign‑exchange data. The outflow added to the dollar‑funding pressure on the rupee during the day. NEWPAR Looking ahead, futures markets imply roughly a 50% probability of another Fed hike next month. Traders also keep an eye on RBI’s potential intervention and the upcoming National Stock Exchange IPO, which may bring dollar inflows. The rupee’s trajectory will likely hinge on the Fed’s path and any RBI action before the next policy meeting.