The rupee opened on a flat note and inched higher by 3 paise to 72.77 against the US dollar in early trade on Tuesday amid strong American currency overseas and subdued domestic equity markets.
However, lower crude prices supported the domestic unit, dealers said.
At the interbank foreign exchange, the rupee opened at 72.78 against the dollar and inched up to touch 72.77 in early deals, registering a rise of 3 paise over its previous close.
On Monday, the rupee had settled at 72.80 against the US dollar.
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, surged 0.13 per cent to 90.05.
On the domestic equity market front, BSE Sensex was trading 104.44 points or 0.20 per cent lower at 52,224.07, while the broader NSE Nifty slipped 50.35 points or 0.32 per cent to 15,701.30.
Global oil benchmark Brent crude futures declined 0.88 per cent to USD 70.86 per barrel.
Foreign institutional investors were net sellers in the capital market on Monday as they sold shares worth Rs 186.46 crore, as per exchange data.
India reported less than one lakh new coronavirus infections after a gap of 63 days, while the daily positivity rate dropped to 4.62 per cent, according to the Union Health Ministry data updated on Tuesday.