The Indian rupee fell to around 96.1 per dollar, reaching multi-week lows as elevated crude prices, a stronger U.S. dollar and expectations of additional Federal Reserve tightening weighed on the currency. Brent crude hovered near $108 a barrel, sustaining dollar demand from oil importers, while the U.S. 10-year Treasury yield approached 5%. Pressure intensified after the Federal Reserve raised interest rates by 25 basis points on Wednesday, its first increase since 2023, and signalled that another hike could come this year. The decision lifted the Dollar Index, a measure of the U.S. currency against major peers, above 100 to its highest level in more than a month. Futures indicated roughly a 50% chance of another Federal Reserve increase next month. Foreign portfolio outflows from Indian stocks and bonds added to the rupee's decline, although a $703 million allocation of NSE shares to anchor investors and continued dollar sales by the Reserve Bank of India (RBI), the country's central bank, could offer support.