India, June 30 -- The rupee pared initial gains and settled lower by 9 paise at 94.54 (provisional) against the US dollar on Monday, as renewed geopolitical tensions hit investors' risk appetite. Forex traders said the rupee opened on a positive note with crude oil prices remaining supportive and foreign inflows improving, but a renewed flare-up in geopolitical tensions after fresh military exchanges between the US and Iran dented investor sentiment.

At the interbank foreign exchange market, the rupee opened at 94.36, then gained momentum and touched an intraday high of 94.25 and a low of 94.56 against the American currency. At the end of Monday's trade, the rupee was quoted at 94.54 (provisional), down by 9 paise over its previous close...