Overview

• The rupee hit an intraday low near 87.80 and closed around 87.68–87.69 on Tuesday after a US draft notice detailed new duties.
• The draft sets an additional 25% levy to begin on Aug. 27, and analysts warn the overall tariff burden could reach about 50% on many exports, pressuring sectors such as shrimp, apparel, leather, and gems and jewellery.
• Equities declined sharply with the Sensex down 849 points and the Nifty lower by 256 points, while FIIs were net sellers of Rs 2,466.24 crore on Monday.
• Traders said direction now hinges on the tariff’s implementation and upcoming US data ahead of the Fed’s Sept. 17 meeting, with the dollar index softer and Brent crude prices easing.
• RBI data showed forex reserves at $695.106 billion for the week ended Aug. 15, and market participants noted the central bank has capped weakness near 87.80 in recent sessions.