The Indian rupee pared its initial gains and settled for the day lower by 7 paise at 85.40 against the US dollar on Friday, amid heightened geopolitical tensions and a negative trend in the domestic markets. Indian shares fell notably on Friday, giving up early gains as uncertainty over geopolitical tensions prompted investors to book some profits. The benchmark S&P/BSE Sensex closed down 588.90 points, or 0.74 percent, at 79,212.53, after having hit a low of 78,605.81 earlier in the day. The broader NSE Nifty index fell to 23,847.85 before recovering some ground to end the session down 207.35 points, or 0.86 percent, at 24,039.35. Moreover, positive US dollar index dented investors' sentiment further.