<h1>Trade negotiations influence currency markets as tariff developments and Fed rate expectations drive rupee appreciation and volatility.</h1> The rupee strengthened to 87.81 against the US dollar on softer dollar conditions and market expectations of a US Federal Reserve rate cut, supported by domestic equity gains and foreign inflows. Ongoing US-India trade negotiations and earlier tariff escalations are noted as policy relevant factors that bolster sentiment but also contribute to exchange rate risk.