The rupee erased its early gains and ended 15 paise lower at 86.67 (provisional) against the US dollar on Monday, as month-end dollar demand from importers kept the greenback in demand.
According to forex traders, market participants remained cautious ahead of the India-US trade negotiations, with the August 1 deadline looming. Additionally, a weak trend in domestic equities weighed on investor sentiment.
Traders also noted that caution prevailed ahead of key monetary policy decisions by the US Federal Reserve and the Bank of Japan scheduled for next week.