<h1>Rupee dips to 88.77 amid dollar strength and FII outflows; RBI watching 88.80, trade talks stir volatility</h1> The Indian rupee weakened by 9 paise to 88.77 per US dollar in early trade, driven by global dollar strength and foreign fund outflows; the central bank is reported to be monitoring the USD/INR around 88.80. Ongoing bilateral trade negotiations with the US, aimed at concluding an initial tranche by October-November 2025, and related tariff concerns are cited as market drivers. Market participants flagged technical levels near 88.80 and 88.50 as significant, and domestic equities rebounded despite foreign institutional investor net selling of about Rs 240 crore, indicating potential volatility contingent on policy moves and trade developments.