The Indian rupee fell 0.4 percent on Wednesday to 96.7750 per dollar, its weakest since mid-May and just 18 paise from its all-time low of 96.96. The slide surprised markets because it followed the Reserve Bank of India’s first rate hike in nearly four years. The RBI raised the repo rate 25 basis points to 5.50 percent and shifted its stance to calibrated tightening. Goldman Sachs called the move hawkish and expects another 25-point hike in December. The rupee has fallen about 7 percent this year, among Asia’s worst currencies. One-year hedging costs have jumped more than 60 basis points this week. Foreign investors have pulled a record $30 billion from Indian equities this year. Traders say the 97 per dollar level is key. A break past it could push importers to hedge more while exporters hold back. Rising oil adds pressure. Brent crude climbed above $102 a barrel on Thursday on worries about Middle East supply, and India imports most of its crude. Analysts say the hike alone will not reverse outflows.