What happened
The FOMC decision and press conference fall on 28 and 29 October. The US policy rate is listed at 4.00%. Separately, reports say the RBI has used around half of a $140 billion inflow of foreign-exchange reserves to defend the rupee.
Why this matters
When US rates stay high, global money prefers dollar assets, and foreign investors (FIIs) sell Indian equities to move money abroad. A weaker rupee then raises the cost of imported crude oil and electronics, feeding into inflation. The RBI spending reserves to hold the rupee is a sign of this pressure, and it limits how far the central bank can cut rates later.
Action plan
Do not trade the Fed headline on the day. Markets often move sharply and then reverse.
Check your portfolio's exposure to export-heavy sectors (IT, pharma) versus import-heavy sectors (aviation, paints, consumer durables).
If you have a dollar-linked goal such as foreign education or a foreign holiday, consider staggering the conversion through LRS rather than converting all at once.
Maintain your SIPs. Rupee weakness alone is not a reason to stop them.
Bottom line
The Fed sets the global tide, but the rupee and the RBI's reserves decide how much of that tide reaches Dalal Street. Watch the rupee and FII flows, not only the headline rate decision.