US tariff hike on Indian imports: Rupee gains marginally
The Indian rupee nudged up by 5 paise to 87.67 against the US dollar, right after President Trump announced a jump in tariffs on Indian imports to a hefty 50%.
The new rates kick in August 27 and are meant to pressure India over its Russian oil buys.
Despite the tension, the rupee managed a small gain.
Analysts warn of potential slowdown in GDP growth
The tariff hike mainly hits India's textile, leather, and seafood exports.
Analysts warn this could slow India's GDP growth below 6% in FY26, thanks to weaker exports and rising trade friction.
Foreign exchange reserves drop by $9.3 billion
Even with the rupee's slight rise, India's foreign exchange reserves dropped by $9.3 billion as the RBI stepped in to manage volatility.
Meanwhile, stock markets took a hit: Sensex fell by over 335 points and Nifty50 slid by 114 points—showing investors are worried about how these global moves could impact key sectors back home.