The Indian rupee pared initial gains and settled for the day lower by 14 paise to 86.59 (provisional) against US dollar on Tuesday, tracking heavy sell-off in the domestic equity market and a recovery in the US dollar index. Indian shares tumbled on Tuesday, with selling seen across the board following U.S. President Donald Trump's announcement of trade tariffs on neighboring countries shortly after taking office. The dollar rebounded as global markets grappled with a mixed set of signals from Trump. The dollar weakened from its 109 levels but clawed back to 108.66 as Donald Trump declared tariffs against Canada and Mexico in the near future but stopped short of declaring any tariffs against China. The benchmark S&P/BSE Sensex slumped 1,235.08 points, or 1.60 percent, to 75,838.36 amid spike in volatility. The broader NSE Nifty index closed at 23,024.65, down 320.10 points, or 1.37 percent, from its previous close. Rupee is expected to see high volatility ahead of key events in the global and the Union Budget on the domestic economic landscape.

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