<h1>Rupee inches up to 88.74 on strong equities and crude; gains capped by firm dollar and capital outflows</h1> The rupee appreciated 5 paise to 88.74 against the US dollar, supported by stronger domestic equities and higher crude, but gains were limited by a firmer dollar and continued foreign capital outflows. Trading ranged between 88.83 and 88.74; analysts expect a 88.50-89 range, noting importer demand could cap upside. Foreign institutional investors net sold equities and foreign exchange reserves fell by about USD 2.334 billion to USD 700.236 billion. A senior government official stated any bilateral trade deal must respect the country's 'red lines,' and negotiations remain unresolved.