The United States is due to begin collecting tariffs on $34 billion in Chinese goods today. Focus has shifted to how China will retaliate.
Trump also threatened to impose additional tariffs more than $500 Billion if China retaliates to his earlier decision.
BOE Governor Mark Carney said he was confident an economic slowdown was temporary, but the rise faded on nervousness before Friday's government meeting on Brexit policy.
Early raisers Asian equities were seen trading lower and SGX Nifty is also a negative start to the local bourses.
Indian Rupee is expected to open neat 68.86 and is likely to trade between 68.68- 69 range for the day.