MUMBAI: The Indian Rupee on Monday pared initial gains and settled 21 paise lower at 81.59 (provisional) against the US dollar on Monday, tracking a rebound in the greenback overseas and a muted trend in domestic equities.

According to forex experts, risk aversion in international markets and sustained foreign fund outflows weighed on investor sentiments.

At the interbank foreign exchange market, the rupee opened on a positive note at 81.29 against the greenback, but pared the gains and fell to an intra-day low of 81.73.The domestic currency finally settled at 81.59, down 21 paise over its previous close.

The dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.12 per cent higher at 102.32.

Gold price at the opening day rose by Rs 314 to Rs 56,701 per 10 gram in the national capital amid strong global trends. Meanwhile, Silver also zoomed Rs 1,173 to Rs 70,054 per kilogram.