Rupee inches 2 paise higher at 74.27 against US dollar in early trade

The Indian rupee opened on a flat note and inched higher by 2 paise to 74.27 against the US dollar in early trade on Friday amid a positive trend in domestic equities.

At the interbank foreign exchange, the domestic unit opened at 74.30 against the dollar, then inched higher to 74.27, registering a gain of 2 paise over its previous close. On Thursday, the rupee had settled at 74.29 against the US dollar.

"Regional currencies have started marginally weaker against the Dollar early Friday morning, while crude remained strong and could keep appreciation bias limited," Reliance Securities said in a research note.

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.11 per cent up at 91.96. On the domestic equity market front, BSE Sensex was trading 72.70 points or 0.14 per cent higher at 52,725.77, while the broader NSE Nifty advanced 26.55 points or 0.17 per cent to 15,805.

Forex traders said foreign fund outflows and firm crude oil prices could weigh on investor sentiment and cap the appreciation of the local unit. Foreign institutional investors were net sellers in the capital market on Thursday as they offloaded shares worth Rs 866.26 crore, as per exchange data.

Global oil benchmark Brent crude futures fell 0.53 per cent to USD 75.65 per barrel.