Rupee traded weak by 25 paise at 85.87, inching closer to the 86.00 mark, as foreign investors remained in sell mode ahead of the RBI policy announcement scheduled for Friday, June 6. Sentiment remained under pressure due to persistent fund outflows and the dollar index rising above the 99.00 level. With key economic data lined up from the US, volatility is expected to stay elevated. The rupee is seen trading in a range of 85.50 to 86.40.