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 Indian rupee recovered 13 paise against the US dollar on Tuesday after President Trump agreed to pause tariffs on Mexico and Canada. The currency had reached an all-time low on Monday.

The Indian rupee fell beyond 87 against the U.S. dollar for the first time on Monday, following a decline in Asian currencies and stock markets after U.S. President Donald Trump’s tariff threats materialized.

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.

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.