The Indian rupee rebounded in early trading on Tuesday, buoyed by U.S. President-elect Donald Trump’s denial of a report suggesting his trade tariffs might not be as stringent as previously feared. By 10:10 a.m. IST, the rupee had strengthened to 85.6750 against the U.S. dollar, recovering from its record low of 85.84 hit on Monday. The Washington Post had reported that Trump’s aides were contemplating tariffs targeting sectors critical to national or economic security. Trump’s denial of this report provided support for the dollar, helping it recover some ground, although it still dipped about 1% against major global peers. The dollar index, which tracks the greenback against a basket of currencies, settled at 108.2, while Asian currencies, including the rupee, logged modest gains. Domestically, the rupee’s recovery was supported by dollar sales from at least two large foreign banks, likely acting on behalf of custodial clients, according to a state-run bank trader. Meanwhile, benchmark Indian equity indexes were back in the green, recovering from the previous session’s slump of over 1.5%.