<h1>Rupee Drops to 86.96 Against Dollar Amid Foreign Fund Outflows and Rising Trade Deficit Concerns</h1> The rupee fell by 8 paise to 86.96 against the US dollar due to continued foreign fund outflows and a negative trend in domestic equities. The Reserve Bank of India's support is diminishing, and foreign investors are selling domestic equities. Despite central bank measures easing trade concerns, domestic macroeconomic challenges persist. India's exports declined for the third consecutive month, with a widening trade deficit. Imports increased due to higher gold shipments. The dollar index rose, and Brent crude prices increased slightly. The BSE Sensex and Nifty saw minor declines, while Foreign Institutional Investors offloaded significant equities.