US Federal Reserve raises interest rates by a quarter percentage point

The US Federal Reserve raised interest rates by a quarter percentage point, bringing the federal funds rate to a range of 3.75% to 4%.

The central bank enacted its first rate hike in over three years amid sticky inflation driven by Middle East tensions and a stable labour market.

Higher US rates could pressure the Indian rupee, widen the current account deficit, and influence foreign portfolio investor outflows from domestic equities.