Rupee Slides Against US Dollar Amid Global Trade Tensions

The Indian rupee slipped below the 86-mark against the US dollar, opening 21 paise lower at Rs 86.01. This marks the currency's weak start for the week, as global markets react to renewed trade tensions stirred by U.S.

President Donald Trump's latest tariff announcement. Trump's decision to impose a 30% tariff on goods from the European Union and Mexico has added fresh uncertainty to already jittery global sentiment, following a week of similar trade measures targeting countries like Canada, Brazil, and Algeria.

Asian equity markets started the week cautiously, reflecting nervous investor behavior. Despite heightened tensions, the Bloomberg Dollar Spot Index held steady, while other major currencies showed limited movement. The Japanese yen gained 0.2% to 147.19 per dollar, indicating some demand for safe-haven assets, while the euro and the offshore yuan remained largely unchanged at $1.1683 and 7.1714 per dollar, respectively.

U.S. economic data continues to influence rate expectations. Strong jobs figures in early July have led traders to rule out a rate cut at the upcoming Federal Reserve meeting, though there's still a 70% probability of easing in September.

Adding to market complexities, Bitcoin surged past $119,000 after setting a record over the weekend, signaling elevated appetite for alternative assets amid global volatility.