The rupee traded at 84.42 against the US dollar in early trade on Thursday amid rising crude oil prices and lackluster sentiment in domestic markets.
A weaker US currency supported the local unit, but it was weighed down by a steady outflow of foreign currencies, forex traders said.
In non-bank foreign exchange, the rupee opened at 84.41 and eased to 84.42 against the greenback, trading at its previous close in early deals.
On Tuesday, the rupee settled at 84.42 against the US dollar. The foreign exchange market was closed on Wednesday due to the assembly elections in Maharashtra.
Meanwhile, the dollar index, which measures the greenback’s strength against a basket of six currencies, was trading 0.11 percent lower at 106.49.
Brent crude, the global oil benchmark, rose 0.22 percent to USD 72.97 per barrel in futures trading.
Ahead of the domestic equity market, the Sensex was trading 398.45 points, or 0.51 percent lower, at 77,179.93 points. The Nifty fell 136.10 points, or 0.58 percent, to 23,382.40 points.
Foreign Institutional Investors (FIIs) were the biggest sellers in the capital market on Tuesday, as they sold shares worth Rs 3,411.73 crore, according to exchange data.
