The rupee opened on a flat note at 74.83 against the US dollar on Thursday, unchanged from its previous close despite a weak dollar, FII inflows and positive opening in domestic equity markets.
After opening flat, the local unit later fell by 2 paise to 74.85, as against its previous close of 74.83 against US dollar, even as Sensex, Nifty were trading in the positive territory.
The dollar index, fell 0.17 per cent to 93.28 against its rivals today.
Forex traders said investors are keeping an eye out for the release of CPI data scheduled later today.
On the equity front, Sensex was rising 95 points at 38,465 and Nifty was trading 37 points higher at 11,346.
Foreign portfolio investors (FPIs) bought shares worth Rs 351.15 crore, while domestic institutional investors (DIIs), were net sellers to the tune of Rs 939.67 crore in the Indian equity market on Wednesday, provisional data showed.
"Asian currencies were trading mixed against the US dollar this morning. However, the greenback is weak against the basket of currencies and could lift sentiments for the domestic unit," Reliance Securities said in a research note.
"COVID-19 vaccine hopes could improve risk appetite, but simmering tensions between the US and China and stalemate between US lawmakers on the stimulus bill could limit the appreciation bias in the market", the report further added.
Meanwhile, oil prices bounced back after data showed US oil inventories fell more than expected. Brent crude futures, the global oil benchmark, fell 0.18 per cent to USD 45.35 per barrel.
In India, coronavirus cases surpassed 23.95 lakh mark today, with total deaths standing at 0.47 lakh. Worldwide, there are 208 lakh confirmed cases and 7.47 lakh deaths from COVID-19 outbreak.
(With PTI Inputs)