The Indian rupee this week is expected to be undermined by the fallout of U.S. President Donald Trump imposing tariffs on Mexico, Canada and China, while government bonds will await cues from the central bank's monetary policy decision.

Late Monday night, Trump announced a 30-day delay on proposed tariffs for Canadian and Mexican import after holding discussions with leaders of both nations.

The Indian rupee fell beyond 87 against the U.S. dollar for the first time on Monday, following a decline in Asian currencies and stock markets after U.S. President Donald Trump’s tariff threats materialized.