India, Aug. 25 -- The rupee pared initial gains and settled for the day lower by 3 paise at 95.74 (provisional) against the US dollar on Monday, on a stronger American currency and weak domestic markets.

Forex traders said the USD/INR pair traded in a narrow range as rising Brent crude prices, persistent importer demand, and cautious sentiment over new US sanctions targeting Iran weighed on investor sentiment.

At the interbank foreign exchange, the rupee opened at 95.65, then touched an intraday high of 95.64 and a low of 95.75 and finally settled for the day at 95.74 (provisional) against the greenback, lower by 3 paise from its previous close. On Friday, the rupee settled higher by just 3 paise at 95.71 against the US dollar.

"We exp...