Mumbai: US President Donald Trump’s tariffs threat is casting a long shadow over Indian markets, pushing the rupee to a record closing low, and weighing on equities. The domestic currency ended Monday at 87.67 against the dollar – a new closing low – even as most Asian peers gained. The move reflects the pressure Indian markets face amid fears of escalating trade penalties from the US.Late on Monday evening, Trump announced that he would be increasing the tariffs on India for Russian oil trades. Dealers and brokers feel that this could have an overhang over both forex and equity markets on Tuesday.“The rupee depreciated due to a negative trade environment,” said K N Dey, a forex consultant who advises Indian corporates. “This is the rupee’s weakest closing level ever. Even though other Asian currencies like the Chinese yuan were stronger, the rupee weakened. Flows are not coming in, and panic buying by importers is adding to the pressure. There’s a lot of uncertainty in the market, and the pressure on the rupee will persist until there’s clarity on the trade front with the US.“While the sensex rose 419 points to close above 81,000 – snapping a two-day losing streak – analysts attribute the rebound to gains in metals and auto stocks rather than a shift in underlying sentiment. Foreign institutional investors have already pulled billions of dollars out of Indian equities in recent weeks. Although inflows tied to the NSDL IPO provided momentary relief, they were quickly offset by renewed outflows.Last Thursday, it had touched an intraday low of 87.74.