The Indian rupee weakened past 87 to the U.S. dollar for the first time ever on Monday in the wake of a slump in Asian currencies and equities after U.S. President Donald Trump's tariff threats became a reality.

The rupee fell 0.5% to a record low of 87.07 per dollar in early trade, down from its previous close of 86.61. The dollar index rose 0.3% to 109.8, while Asian currencies weakened after Trump’s tariff announcement. The offshore Chinese yuan, which the Indian traders track, declined 0.5% to 7.35 per dollar.

Though Trump has been threatening BRICS countries also, it remains as to when he would press the button. This could be a knee jerk on the Rupee, but its better to wait and watch for a couple of days the currency expert said.

The Indian rupee weakened past 87 per U.S. dollar for the first time on Monday, as Asian currencies slumped after U.S. President Donald Trump imposed tariffs on the country's largest trading partners,

The rupee breached the key 87 per dollar mark on Monday as the dollar strengthened after US President Trump slapped tariffs on Canada, Mexico and China. The dollar index surged by 1.35 per cent to 109.83. It measures the strength of the greenback against a basket of six major currencies.

This comes amid investor worries over potential trade war between US and its trading partners following tariff threats.

The rupee fell by 67 paise to hit record low of 87.29 against the US dollar in early trade on Monday, February 3, 2025, a day after US President Donald Trump's tariffs on Canada, Mexico and China that triggered fears of a broad trade war.

The dollar index was up 0.3% at 109.8, while Asian currencies weakened, with the offshore Chinese yuan down 0.5% at 7.35 per US dollar.