NEW DELHI: The US dollar strengthened against the rupee on Wednesday after US President Donald Trump ’s speech in which he threatened to "substantially" increase tariffs if China failed to agree a trade deal. The domestic currency breached the 72 level for the first time in over two months.The rupee ended the day at 72.08, down 62 paise or 0.87 per cent. The last time, the local currency was above 72-level was on September 4.The rupee on Monday ended 19 paise down to a near one-month low of 71.47 against the greenback. The currency market was shut on Tuesday on account of Guru Nanak Jayanti.India reported a dismal factory output data, which also hit traders confidence in rupee. It shrank to the lowest level in eight years as all three broad-based sectors of capital goods production, consumer durables, and infrastructure and construction goods contracted.The Index of Industrial Production (IIP) fell 4.3 per cent in September as compared to a contraction by 1.4 per cent in August 2019 and a growth of 4.6 per cent in factory output in the same month a year back, data released by the Ministry of Statistics showed on Monday.The second straight month of contraction has taken the IIP to its lowest level since it shrank by 5 per cent in October 2011.