The Indian rupee shed much of its early gains to close largely unchanged on Tuesday as the U.S. dollar recovered after President Donald Trump said he was thinking about imposing tariffs on Canada and Mexico.

At the interbank foreign exchange, the rupee opened at 86.28, registering a rise of 17 paise from its previous close of 86.45 against the greenback.

The dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading lower by 0.30% at 109.02.

The Indian rupee is poised to open higher on Tuesday amid swings in the U.S. dollar, spurred largely by the news flow and headlines related to U.S. President Donald Trump's tariff plans. The 1-month non-deliverable forward indicated that the rupee will open at 86.