<h1>Exchange rate pressure: stronger dollar and foreign outflows weigh on the currency, raising near term market volatility risks.</h1> The rupee weakened against the US dollar due to a stronger dollar caused by a hawkish Fed outlook and continued foreign portfolio outflows, with importer dollar demand and tariff uncertainty adding selling pressure; potential central bank intervention could stabilise the currency. Domestic indicators showed easing crude futures, higher equity benchmarks, and net equity outflows by foreign institutional investors, while upcoming macro data, the national budget, and central bank bond operations may increase market volatility.