<h1>Indian Rupee Drops to 86.56 Against USD Amid Global Risk Aversion, Strong Dollar Demand, and Rising US Treasury Yields.</h1> The Indian rupee fell by 25 paise to close at 86.56 against the US dollar due to global risk aversion following tariff threats by the US President. The rupee faced pressure from sustained foreign fund outflows and strong US dollar demand, particularly from oil importers. Despite a decline in crude oil prices providing some relief, factors like rising US treasury yields and ongoing foreign institutional investor outflows contributed to the rupee's depreciation. The Reserve Bank of India's measures, including purchasing government securities, aim to inject liquidity and support the rupee. Meanwhile, the US dollar index rose, reflecting its strength against other currencies.