<h1>Domestic currency gains 12 paise to 87.96 amid softer dollar, risk-on flows, likely central bank FX intervention, equity inflows</h1> The domestic currency appreciated by 12 paise to close at 87.96 against the US dollar, marking a second consecutive session of gains driven by a softer dollar, risk-on investor sentiment, likely central bank intervention and strong equity inflows. Market commentary flagged short-term support at 87.60 and resistance at 88.70. Key legal and regulatory considerations include potential central bank FX intervention scope, disclosures and compliance by financial institutions managing foreign exchange positions, and monitoring of systemic risk from rapid capital flows; trade data showing widening deficit may influence future policy and regulatory responses.