The rupee today pared its initial gains and settled five paise lower at Rs. 73 and 36 paise against the US dollar.

The domestic unit weakened tracking heavy selling in domestic equities and strengthening American currency.    

Forex traders said rising COVID-19 cases and uncertainty over US stimulus also affected investor sentiment.

The dollar index, which indicates the strength of the U.S. currency against a basket of six other leading currencies, rose 0.34 per cent to 93.69.