<h1>Indian Rupee Gains 12 Paise Against Dollar on Investor Inflows and Weakening USD Index Amid Economic Shifts</h1> The Indian rupee strengthened by 12 paise to 85.42 against the US dollar in early trade, driven by strong foreign institutional investor inflows and a weaker dollar index. However, a widening trade deficit, subdued domestic equity markets, and rising Brent crude prices limited further gains. The dollar index fell as market expectations of potential Federal Reserve rate cuts increased, influenced by recent US economic data.