New Delhi, Aug. 1 -- The Indian Rupee is likely to weaken further to 88.5 per U.S. dollar following the imposition of fresh tariffs by U.S. President Donald Trump, according to a report by ICICI Bank.

The report noted that the Rupee has already depreciated by 2.4 per cent since the beginning of the calendar year and is currently trading at 87.55 per U.S. dollar, as per the Reserve Bank of India.

From a Real Effective Exchange Rate (REER) perspective, the Rupee remains fairly competitive at around 100.

Interestingly, the U.S. Dollar index has declined by 8 per cent so far this year. However, the current month has seen the Dollar index appreciating again as several trade deals are being signed. This has led to a general depreciation tren...