Rupee drops to 85.86 vs dollar amid foreign outflows; RBI rate cut in focus

The rupee weakened to 85.86 against the US dollar due to foreign fund outflows, despite support from positive domestic stock market signals and falling crude oil prices. The RBI is expected to intervene to maintain the 85-86 range, with attention focused on the upcoming monetary policy committee outcome. Analysts predict a 25 basis points repo rate cut.