The Indian rupee weakened against the U.S. dollar in the European session on Monday, as Trump's tariff threat bolstered the dollar.

The U.S. President-elect Donald Trump has threatened the BRICS grouping with "100 percent tariffs" if they moved to create a new currency or back any other option as the world's reserve.

In economic news, data from S&P Global showed that India's manufacturing sector growth remained strong in November, but the pace of expansion softened due to slower increases in orders and production amid inflationary pressures.

The HSBC final manufacturing Purchasing Managers' Index dropped to 56.5 in November from 57.5 in October. The flash reading was 57.3. A score above 50.0 indicates expansion.

Against the U.S. dollar, the rupee fell to a record low of 84.728 from an early high of 84.564.

If the rupee extends its downtrend, it is likely to find support around the 85.00 region.

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