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.

Forex traders said the Indian rupee touched a fresh all-time low on a surge in the US Dollar index and weak global markets after Trump Tariffs on Canada Mexico, and China triggered fears of a broad trade war.

The fall of the rupee to a new all-time low was in line with other global currencies, which weakened against the greenback after Trump imposed tariffs on Canada, Mexico and China, and threatened to increase levies on the European Union.