<h1>Domestic currency strengthens to 87.07 on global risk appetite, GST reform hopes, rating upgrade amid rising trade tensions</h1> The domestic currency strengthened to 87.07 against the dollar after intraday volatility, aided by improved global risk appetite, proposed domestic GST reforms, and a foreign credit-rating upgrade. Market drivers included equity gains, potential foreign fund inflows, and oil and dollar movements. Separately, a foreign government announced punitive tariffs on the country's exports effective Aug 27 and a senior official accused the country of profiting from reselling discounted oil, raising bilateral tensions that could prompt retaliatory trade measures or compliance scrutiny. Foreign institutional investors registered net equity sales, signaling mixed capital-flow risks.