Rupee Dips 5 Paise to 89.95 Against US Dollar Amidst Fund Outflows

• The rupee declined by 5 paise to 89.95 against the US dollar in early trade on Monday.
• Foreign fund outflows and subdued domestic equity markets contributed to the rupee's fall.
• Experts note FPI flows are crucial, with the rupee being the worst-performing EM/Asian currency.
• RBI's interventions and India-US trade talks are seen as anchoring market confidence.
• India's forex reserves increased by USD 4.368 billion to USD 693.318 billion.

Why It Matters: Rupee weakens against US dollar due to foreign fund outflows, despite RBI intervention and rising forex reserves.