Due to concerns over tariffs, the rupee records its worst day in three weeks and falls to 87 against the dollar once more

Following US President Donald Trump's announcement that tariffs against Canada and Mexico will proceed as planned, the dollar nudged up on safe-haven flows, causing the Indian rupee to record its worst day in three weeks on February 25 by dropping 50 paise.

The rupee dropped from 86.85 to 87.25 due to month-end dollar demand over fixing and the RBI's reversal of attitude, according to Anil Kumar Bhansali, Head of Treasury and Executive Director, Finrex Treasury Advisors LLP.

The rupee saw its largest one-day decline since February 5 and closed the day at 87.21 to the US dollar, down from 86.6950 the day before.

Throughout the day, the rupee and other Asian currencies lost value in relation to the US dollar. The rupee, Thai Baht, and Indonesian Rupiah are all down 0.51, 0.52, and 0.43 percent from the previous day's closing, according to Bloomberg statistics.

In afternoon trading, the dollar index, which compares the value of the US dollar to six key international peers, increased to 106.769. The previous session concluded at 106.596.

Following Trump's announcement that tariffs on Canada and Mexico were on track, the dollar recovered some of its losses after plunging to its lowest level in two months the day before.

Trump said on February 24 that the 25 percent tariffs slated for the United States' two largest trading partners, Canada and Mexico, will take effect in March during a press conference with French President Emmanuel Macron, who was in town.

Trump declared, "We're on time with the tariffs, and it seems like that's going very quickly." "Not only Canada and Mexico, but many other countries have mistreated and exploited us."