<h1>Currency drops 12 paise to 87.59 vs USD amid trade tariff worries and foreign fund outflows; credit rating upgraded BBB stable</h1> The domestic currency depreciated by 12 paise to close at 87.59 against the US dollar due to sustained dollar demand from importers, foreign fund outflows, and uncertainty over trade tariffs between the two countries. Despite initial gains supported by positive crude oil prices, the currency weakened amid cautious investor sentiment ahead of US-Russia talks. The sovereign credit rating of the country was upgraded to 'BBB' with a stable outlook by a major rating agency, citing strong economic growth and fiscal discipline, despite recent US-imposed tariffs. The agency assessed that the tariffs would have a manageable impact on the economy, given its reliance on domestic consumption. The rating upgrade is expected to reduce borrowing costs for domestic companies internationally. Meanwhile, foreign institutional investors sold equities worth significant amounts, and key domestic equity indices closed marginally higher.