The Indian rupee weakened to 87.88 against the U.S. dollar on Tuesday, brushing against February’s lifetime low of 87.95, after President Donald Trump warned he could sharply raise tariffs on Indian exports. The currency later settled at 87.80, cushioned by suspected dollar sales from the Reserve Bank of India (RBI) aimed at preventing a breach of the psychologically important 88 level. Trump’s latest comments come only a week after he imposed an unexpected 25% tariff on Indian imports, citing New Delhi’s continued purchase and resale of Russian oil. India’s foreign ministry said it would take “all necessary steps” to safeguard national interests, while traders warned the escalating dispute risks accelerating foreign capital outflows. Market data showed offshore one-month rupee forwards trading above 88, and National Securities Depository Ltd. figures indicated overseas investors sold a net $165.5 million of Indian equities on Aug. 1. Analysts said that if the dollar-rupee rate decisively tops 87.95, the pair could quickly test 88.50 unless the RBI intensifies intervention.