The Indian rupee pared initial gains and settled for the day 15 paise lower at 86.67 (provisional) against the US dollar on Monday, tracking sharp gains in the American currency overseas. Investors are cautiously awaiting the outcome of India-US trade talks ahead of the August 1 deadline. Moreover, a negative trend in the domestic equity markets dented investors' sentiments further. Indian shares fell notably on Monday as caution prevailed ahead of the U.S. tariff deadline set to take effect later this week. The benchmark BSE Sensex tumbled 572.07 points, or 0.70 percent, to 80,891.02, with selling seen across sectors. The broader NSE Nifty index dropped 156.10 points, or 0.63 percent, to 24,680.90. Meanwhile, investors also remained cautious ahead of the US Federal Reserve and Bank of Japan's monetary policy decisions next week. On the NSE, USDINR ended at 86.57, up 0.17% on the day.