The rupee pared initial gains to settle 18 paise lower at 73.79 (provisional) against the US dollar on Monday even as the domestic equity market was trading with significant gains.
The local unit opened 3 paise lower at 73.64 at the interbank forex market. After witnessing a volatile trading session, it finally closed at 73.79 against the greenback, down 18 paise over its previous close.
On Friday, the rupee had staged a smart rebound and close at 73.61 against the US dollar.
During the session, the domestic unit witnessed an intra-day high of 73.53 and a low of 73.86 against the American currency.
Forex traders said investors are looking for cues from the first presidential debate between US President Donald Trump and Democratic candidate Joe Biden, set for Tuesday.
Meanwhile, the dollar index, which gauges the greenback''s strength against a basket of six currencies, fell 0.16 percent to 94.49.
On the domestic equity market front, BSE benchmark Sensex was trading 566.17 points higher at 37,954.83, and the broader NSE Nifty rose 174.05 points to 11,224.30.
Foreign institutional investors were net sellers in the capital market as they offloaded shares worth Rs 2,080.21 crore on a net basis on Friday, according to provisional exchange data.