The rupee gained 61 paise to 86.84 against the US dollar in early trade on Tuesday, after nearing closer to 88-level on Monday, amid high volatility as heightened trade war fears have created widespread economic uncertainty, significantly impacting global currency markets.

The sharp depreciation in the rupee was driven primarily by the threats of reciprocal tariffs and additional protectionist measures that have strained global supply chains, deepening concerns over prolonged economic disruption, forex traders said.

At the interbank foreign exchange, the rupee opened at 87.45 against the greenback, then touched 86.84 against the American currency in morning trade, registering a rise of 61 paise from its previous close.