<h1>Rupee Drops 8 Paise to 86.87 Against USD Amid Strong Dollar and Foreign Fund Outflows; Oil Prices Ease</h1> The rupee depreciated by 8 paise to close at 86.87 against the US dollar, influenced by a strong American currency and continued foreign fund outflows. Initially firm, the rupee lost ground due to volatile domestic equity markets and foreign institutional investor withdrawals. Although easing crude oil prices provided some support, market participation was muted ahead of inflation and industrial output data. The rupee fluctuated between 86.36 and 86.91 during the day. Previously, it had gained 66 paise, marking its largest single-day rise since March 2023. The US dollar index rose slightly, while Brent crude prices fell. Domestic equity markets also saw declines.