The Indian rupee has weakened substantially, despite the Reserve Bank of India’s active interventions over the past few months. Shortly after the central bank’s decision to leave key interest rates unchanged on Wednesday, the currency slipped to Rs87.88 against the dollar — nearly hitting the record low of Rs87.95 set in February.

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.