<h1>Rupee Drops to 85.53 Against Dollar Amid Importer Demand, Foreign Outflows, and Weak Equities; Pressure Likely to Persist.</h1> The rupee fell by 5 paise to 85.53 against the US dollar in early trade, influenced by importer dollar demand, foreign fund outflows, and weak domestic equities. The rupee experienced volatility due to the expiry of December currency futures and maturing forward positions. On Friday, it hit a lifetime low of 85.80 before recovering slightly. Analysts expect the rupee to remain under pressure due to foreign institutional investor outflows, India's slowing growth, and a widening trade deficit. The dollar index remained strong, while global markets anticipated low volumes due to the holiday season. India's forex reserves continued to decline, reaching USD 644.391 billion.