US President Donald Trump’s plans to impose 25 per cent tariffs on all imports of steel and aluminum into the US sent the rupee and the Indian stock markets scurrying for cover even as gold prices zoomed to hit a lifetime high on Monday.

“Any steel coming into the United States is going to have a 25 per cent tariff,” Trump told reporters Sunday on Air Force One as he flew from Florida to New Orleans to attend the Super Bowl.

When asked about aluminum, he responded, “aluminum, too” will be subject to the trade penalties, reports AP.

The rupee dropped to a record intra-day low in line with other regional currencies but recovered on Reserve Bank of India (RBI) intervention and dollar sales from exporters.

Metal stocks tumbled on the Bombay Stock Exchange following Trump’s braggadocio on steel and aluminium duties.

At the inter-bank forex market, the domestic unit crashed to a low of 87.95 against the greenback as the US President’s tariff threatsled to fears of a global trade war with other countries imposing reciprocal tariffs.

While Trump did not disclose specific details there is a fear he may target imports from India.

Forex circles said intervention from the RBI led to the rupee not falling below the 88-mark and settling almost flat at 87.48.

They said strong dollar sales from the RBI indicate it is unlikely to allow the rupee to fall below the 88 mark.

``The rupee touched fresh record lows in early trades on weak domestic markets and a strong US dollar index. However, the rupee recovered early losses on supposed intervention by the RBI,’’ Anuj Choudhary — research analyst at Mirae Asset Sharekhan said.

“Traders may take cues from inflation data from the US and India this week. Rupee spot price is expected to trade in a range of 87.25 to 87.80.”

Some analysts said persistent FPI sales coupled to any adverse statements or actions from Trump could see the rupee dipping below the 88 level.

Anil Kumar Bhansali, head of treasury and executive director Finrex Treasury Advisors LLP, told Reuters the target of 88 is likely to be achieved in February itself.

“The continued outflow of funds post-budget and RBI policy weighed on sentiment, as neither event provided any substantial reforms or structural shifts beyond higher tax slabs for retail and a minor rate cut from the RBI,” Jateen Trivedi, VP research analyst — commodity and currency, LKP Securities, said.

Stocks tank

Trump’s tariff threat also impacted stocks with benchmark indices falling for the fourth straight session. The 30-share Sensex lost 548.39 points to end at 77311.80 after tanking 753.3 points to a day’s low of 77106.89. On the NSE, the Nifty declined 178.35 points or 0.76 per cent to 23,381.60

Among metal stocks, shares of National Aluminium Company tanked 4.83 per cent, SAIL tumbled 4.67 per cent, Vedanta declined 4.31 per cent, NMDC fell 3.95 per cent and Tata Steel 3.11 per cent on the BSE. The BSE metal index tanked 2.63 per cent.

Gold price surge

Gold prices zoomed ₹2,430 to hit a lifetime high of ₹88,500 per 10 grams in the national capital on Monday following firm global trends and a weak rupee, according to the All India Sarafa Association.

The precious metal breached the record $2,900 an ounce level in spot markets globally after Trump announced the imposition of fresh 25 per cent tariffs on all steel and aluminum imports to the US.

Heavy buying by jewellers and retailers also boosted the prices.