The Indian rupee may drop past 88 to the U.S. dollar to an all-time low on Tuesday after U.S. President Donald Trump threatened steeper tariffs on Indian goods, worsening fragile sentiment and stoking concerns of more foreign outflows.

India has hit back, terming the criticism from Washington and Brussels as 'unjustified and unreasonable' , saying it will 'take all necessary measures to safeguard its national interests and economic

Trump's new tariffs on India and penalties over Russian oil imports pressured the rupee, which fell to 87.95 against the dollar. His threats and criticism add to the strain.