<h1>Domestic currency gains 28 paise to 87.81 on dollar weakness, rate-cut bets and trade negotiation support; volatility ahead</h1> The domestic currency strengthened by 28 paise to 87.81 against the US dollar in early trade, driven by broad dollar weakness amid market expectations of a 25-basis-point rate cut by a major foreign central bank and attendant policy commentary; volatility is expected around the central bank decision. Market participants cited support from ongoing bilateral trade negotiations between the two countries and domestic monetary authority stance, while warning of medium-term downward pressure from external imbalances and policy uncertainty. Equity inflows and indices rose; crude eased. Reports also noted recently increased tariffs imposed by a foreign government as a backdrop to trade tensions.