MUMBAI: The rupee traded in a narrow range and edged up by just 4 paise to 95.03 against US dollar in early trade on Wednesday amid elevated crude oil prices and strong dollar.

Forex traders said rupee is under pressure amid persistent macroeconomic headwinds, including global dollar strength and Brent crude prices hovering near USD 115 per barrel.

At the interbank foreign exchange market, the rupee recorded marginal gains and touched 95.03, registering a rise of 4 paise over its previous close.

On Tuesday, the rupee closed at 95.07 against the American currency.

"We expect the rupee to trade with a slight negative bias on positive dollar and weak Asian currencies. Crude oil prices remain elevated which may also keep rupee under pressure," said Anuj Choudhary, Research Analyst at Mirae Asset Sharekhan.

Any intervention by the RBI may support the rupee at lower levels. Investors will watch out for the FOMC decision.

"Fed is expected to keep rates unchanged but markets will watch out for Fed Chair Kevin Warsh’s presser for guidance. USDINR spot price is expected to trade in a range of 94.85. to 95.40," he said.

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading at 102.37, higher by 0.06 per cent.

Brent crude, the global oil benchmark, was trading higher by 1.37 per cent at USD 115.44 per barrel in futures trade.

On the domestic equity market front, Sensex tumbled 601.14 points to 72,997.55 in early trade, while Nifty fell 146 points to 22,604.80.

Foreign Institutional Investors (FIIs) bought equities worth Rs 4,240.39 crore on a net basis on Tuesday, according to exchange data.