<h1>Rupee gains 21 paise to 87.87/USD; central bank intervention likely, triggering tighter FX oversight and reporting obligations</h1> The rupee strengthened 21 paise to 87.87 per US dollar, attributed to a softer dollar, risk-on investor sentiment, likely central bank intervention, and robust domestic equity performance. From a legal/regulatory perspective, the central bank's potential market intervention underscores its statutory authority over forex stability and may trigger heightened oversight of foreign exchange operations and disclosure obligations for market participants. Significant FIIs inflows and widening trade deficits increase monitoring needs under external sector regulations and could prompt policy responses affecting import/export compliance, capital controls, and reporting requirements should volatility persist.