<h1>Rupee Drops 8 Paise to 86.96 Against USD Amid Foreign Fund Outflows and US Dollar Strengthening</h1> The rupee depreciated by 8 paise, closing at 86.96 against the US dollar due to persistent foreign fund outflows and a strengthening US Dollar index. The decline was also influenced by disappointing trade deficit data, with India's exports dropping for the third consecutive month and imports rising, particularly in gold. The domestic equity market saw slight declines, with foreign investors selling equities worth Rs 3,937.83 crore. The US dollar index rose by 0.35%, while Brent crude increased by 0.77%. The rupee is expected to trade with a negative bias amid weak domestic equities and FII outflows.