<h1>Rupee edges to 88.69 amid capital outflows, reserves drop and potential central bank intervention ahead of policy meeting</h1> The rupee's modest appreciation to 88.69 against the US dollar reflects market volatility driven by external factors, sustained foreign capital outflows and geopolitical developments; the central bank's imminent policy meeting is expected to shape intervention and bond-market responses under applicable foreign exchange regulations. Market participants flagged potential central bank intervention to cap depreciation, while falling foreign exchange reserves and large equity sell-offs by foreign institutional investors heightened pressure. Concurrently, a new foreign tariff regime announced by the US affects investor sentiment and cross-border trade flows, potentially influencing regulatory scrutiny and monetary policy tools used to manage exchange-rate stability.