The Indian rupee weakened to around 95.5 per dollar, after trading largely flat in the previous week, as renewed expectations of a Federal Reserve rate hike strengthened the dollar and pushed US Treasury yields higher. Markets raised the probability of a September rate increase to nearly 60% following hawkish remarks from Fed Chair Kevin Warsh, increasing pressure on the rupee. Higher crude prices also weighed on sentiment, with Brent approaching $90 a barrel amid renewed tensions around the Strait of Hormuz. However, persistent foreign-currency inflows and RBI intervention are expected to limit the currency’s downside, with the 95.70-95.80 zone seen as a well-defended level. India’s forex reserves reached a record $729.33 billion in the week to August 21, rising for an eighth straight week as RBI measures attracted nearly $73 billion in inflows, including about $65 billion from non-resident Indian deposits.