The rupee pared its initial gains to settle 10 paise down at 82.16 (provisional) against the US dollar on Monday, tracking the weak sentiment in the domestic equity market and unabated foreign fund outflow.

Traders said fall in crude oil price and weaker dollar against major currencies, however, restricted the fall of the Indian currency.

At the interbank foreign exchange market, the local unit opened stronger at 81.78 against the American currency and touched a low of 82.20 during intraday. It settled at 82.16 (provisional) against the greenback, registering a loss of 10 paise over its previous close of 82.06.

Also read: Crude oil prices up as SVB failure lowers fears of rate hikes in US

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, fell 0.37 per cent to 104.19.

Global oil benchmark, Brent crude futures, declined 1.72 per cent to $81.36 per barrel.

On the domestic equity market front, the 30-share BSE Sensex declined 897.28 points or 1.52 per cent to end at 58,237.85, while the broader NSE Nifty fell 258.60 points or 1.49 per cent to 17,154.30.

Also read: ‘No relation to SVB’: India’s SVC Bank acts to calm depositors amid brand name confusion

Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Friday as they offloaded shares worth ₹2,061.47 crore, according to exchange data.

Investors were trading cautiously as they were concerned over the developments following the collapse of the Silicon Valley Bank in the US.

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