India faced a new tariff threat from Donald Trump, who announced he would “substantially raise” duties on Indian exports in retaliation for India’s continued purchases and resale of Russian oil. The Indian rupee edged up to around 87.77 per USD, after the central bank kept its key policy rate unchanged, as expected, and maintained a “neutral” stance. This followed a surprise 50 bps rate cut in June. Governor Malhotra noted ongoing global trade challenges but said India’s economic outlook remains bright.