New Delhi, Feb. 5 -- Asian currencies also slumped after the dollar rallied on Trump's sweeping tariffs that impose a 25% levy on Mexican and Canadian imports into the U.S., while those from China will attract a 10% charge. The tariffs kick in on Tuesday.

While intermittent dollar sales from state-run banks helped limit the rupee's decline, the absence of stern intervention by the central bank was seen by many traders as an affirmation that it is allowing the rupee to move in line with its peers.

Amid persistent headwinds and expectations of the central bank easing its grip, the rupee's 1-month implied volatility has averaged about 3.5% so far in 2025, up from the average of 2% last year. News on U.S. tariffs is expected to dominate cue...