The Indian rupee declined for the third straight session on Tuesday, logging the maximum single-day loss in nearly three months amid a looming global trade war stoking fears of economic meltdown. Rupee tumbled 50 paise to settle at 86.26 (provisional) against the US dollar. Recovery in equities and weakness in greenback also failed to prop up the currency. The benchmark 30-share S&P/BSE Sensex jumped 1,089.18 points, or 1.49 percent, to 74,227.08 while the broader NSE Nifty index closed at 22,535.85, down 374.25 points, or 1.69 percent, from its previous close. Meanwhile, recovery in crude oil prices and continued foreign capital outflows also dented sentiments. Besides, the global markets have been facing extreme volatility following a fresh threat by the US administration to impose a punitive 50 per cent tariff against China's retaliatory 34 per cent import levies on American products.