The Indian rupee pared initial gains to settle 3 paise lower at 88.12 (provisional) against the US dollar on Tuesday, tracking persistent foreign portfolio outflows and global trade tensions. INR remained under pressure on worries over US tariffs on India and global trade uncertainties. Moreover, sustained foreign fund outflows also dented investor sentiments. At the interbank foreign exchange, the rupee opened at 87.98 against the US dollar and touched an intraday low level of 88.19 before ending the session at 88.12 (provisional), down 3 paise from its previous close. Meanwhile, dollar index extends downside to a near seven week low on Tuesday morning in Asia amid rising expectations of a September Federal rate cut that is pushing down the dollar. The dollar index is seen edging lower since Friday’s weak US jobs report and is linger under 98 mark.