<h1>Rupee Drops to 85.74 Against US Dollar Amid Rising Oil Prices and Foreign Fund Outflows; Analysts Predict Negative Bias.</h1> The rupee declined by 6 paise to 85.74 against the US dollar due to rising crude oil prices and foreign fund outflows. It opened at 85.77, peaked at 85.65, and hit a low of 85.80 before settling. The dollar's retreat and domestic equity market recovery provided some relief. Analysts predict a negative bias for the rupee due to foreign institutional investor outflows and a strong US dollar, with expectations of no Fed rate cut. The domestic services sector showed strong growth, with the HSBC India Services Business Activity Index rising to 59.3 in December.