Overview

• President Trump announced a 35% tariff on Canadian imports effective August 1 and flagged 15–20% duties on most other US trade partners.
• In early Friday trading, the rupee opened at 85.76 and weakened by 19 paise to 85.89 per US dollar, marking its lowest level since early July.
• Initial gains driven by foreign equity inflows and optimism over tariff deadline extensions were reversed as the latest levy announcements dampened sentiment.
• RBI interventions supported by India’s $703 billion forex reserves are keeping volatility in check with mixed Federal Reserve rate-cut forecasts and swings in oil and gold prices influencing market strategies.
• An Indian commerce ministry delegation is set to visit Washington soon, aiming for an interim US-India trade agreement by the August 1 deadline.