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.

AUD/USD pauses its rebound and drops further to test 0.6200 in Asian trading on Tuesday. US President Trump tariffs on China kick off shortly while markets price in aggressive RBA rate cut bets, both weigh down on the Aussie even though risk appetite improves.

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 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 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.

AUD/USD pauses its rebound and drops further to test 0.6200 in Asian trading on Tuesday. US President Trump tariffs on China kick off shortly while markets price in aggressive RBA rate cut bets, both weigh down on the Aussie even though risk appetite improves.

The Indian rupee is poised to open at an all-time low against the dollar on Monday, tracking a slump in Asian currencies and risk aversion on worries over a trade war between the U.S. and its trading partners.