Mumbai, Oct. 7 -- The Indian rupee slumped 43 paise to close at 96.78 (provisional) against the US dollar on Wednesday, after the Reserve Bank of India raised the key benchmark policy rate by 25 basis points to 5.5 per cent. RBI's rate hike reflects rising cyclical inflation risks, while the shift in stance to 'calibrated tightening' alongside higher growth and inflation projections highlights the MPC's hawkish approach. At the interbank foreign exchange market, the rupee opened at 96.37 and traded in the range of 96.34-96.84 before eventually settling at 96.78 (provisional), down 43 paise from its previous close. Indian shares fell notably on Wednesday after two days of gains amid diminished expectations for another Federal Reserve inter...