<h1>Stronger dollar, higher crude push rupee to 87.58, raising FEMA and RBI compliance and sanctions risks for importers</h1> The rupee's intraday decline to 87.58 against the US dollar is attributed to a stronger dollar, rising crude prices and market concern over imminent US tariff measures; this raises legal and regulatory exposure for importers and forex market participants under FEMA and RBI oversight. Anticipated tariff enforcement and potential US pressure over procurement of discounted foreign crude may trigger compliance risks, secondary sanctions risk and transactional scrutiny. Concurrent credit-rating commentary and rising domestic yields could affect sovereign risk perception and capital flows, as evidenced by recent foreign institutional investor outflows and a modest rise in foreign-exchange reserves, informing supervisory and policy responses by monetary authorities.