Indian rupee may plunge amid US threats of higher tariffs over aid to Russia

The Indian rupee may drop below 88 per US dollar today, reaching a historic low.

According to Report, citing Reuters, the reason is new threats from US President Donald Trump to increase tariffs on Indian goods.

The previous record low of 87.95 was fixed in February.

Trump once again accused India of purchasing and reselling Russian oil, threatening to “significantly raise tariffs” on its goods.

India’s Ministry of External Affairs responded that the country “will take all necessary measures to protect national interests and economic security.”

Last week, Trump already imposed 25% tariffs on imports from India—higher than expected. Negotiations on a trade agreement between the two countries have also stalled.

Amid worsening sentiment, the rupee weakened despite an overall decline in the US dollar. On Monday, the Indian currency failed to maintain an intraday gain up to 87.20 and resumed its downward trend.