<h1>Rupee firms five paise to 88.74 amid IPO inflows, capital outflows, reserve decline and FEMA/RBI policy risks</h1> Rupee appreciation of five paise to 88.74 against the dollar is reported amid IPO-related inflows, persistent capital outflows and geopolitical risks, with the central bank's foreign exchange data showing a weekly reserve decline. Market commentary links limited currency movement to ongoing foreign institutional sell-offs and higher oil and dollar-index levels. A senior government official warned that any bilateral trade agreement must respect national 'red lines,' indicating unresolved negotiation boundaries with a major trading partner. The developments implicate foreign exchange regulation, reserve management and trade-law negotiations, potentially affecting capital controls and policy responses under the RBI/FEMA framework.