The Indian rupee is set to open weaker on Thursday after a hawkish surprise from the U.S. Federal Reserve boosted bets of an interest rate hike later this year. The rupee is expected to open in the 94.70–94.75 range on Thursday, traders said, after settling at 94.5250 in the previous session. Fed policymakers struck a more hawkish tone than expected late Wednesday, with nine of 18 projecting at least one rate hike in 2026. Economists had anticipated far fewer, with Goldman Sachs saying it expected around three members to signal a hike. Goldman Sachs further flagged the Fed’s inflation outlook, noting the median projection for 2027 core PCE inflation (Q4/Q4) was set at 2.5%, above its 2.3% estimate. The meeting raises the risk of interest rate hikes later this year, the bank said in a note. However, their base case for now remains that the Fed will leave the policy rate unchanged this year.