<h1>Rupee slips to 88.78 as dollar strength and foreign outflows weigh; trade talks with US face sovereign red lines</h1> Rupee weakened marginally to 88.78 against the US dollar amid strong dollar strength and continued foreign capital outflows, with trading activity subdued by global trade uncertainties and a prolonged US government shutdown after funding proposals were rejected. Market movements included a modest rise in the domestic equity indices while foreign institutional investors net sold equities. Government officials reported ongoing bilateral trade negotiations with the US aiming for a November target, while stressing sovereign 'red lines' that could limit concessions, indicating potential legal and policy constraints on any future trade agreement.