MUMBAI: The rupee traded in a narrow range and edged up 3 paise to 94.78 against the US dollar in early trade on Friday amid elevated crude oil prices and foreign fund outflows.

Forex traders said rupee is under pressure amid persistent macroeconomic headwinds, including global dollar strength and Brent crude prices hovering near USD 113 per barrel.

At the interbank foreign exchange market, the rupee opened at 94.78, registering a gain of 3 paise over its previous close.

On Thursday, the rupee closed at 94.81 against the American currency.

Foreign investors turned cautious seeking safe-haven greenback assets amid elevated US Treasury yields, said Anil Kumar Bhansali, Head of Treasury and Executive Director Finrex Treasury Advisors LLP.

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading at 101.64, higher by 0.04 per cent.

Brent crude, the global oil benchmark, was trading higher by 0.42 per cent at USD 113.65 per barrel in futures trade

Sensex rose 343.48 points to 73,592.87, while Nifty gained 41.65 points to 22,729.30.

Foreign Institutional Investors (FIIs) offloaded equities worth Rs 3,458.70 crore on a net basis on Thursday, according to exchange data.