The gains in the rupee were limited amid a rise in crude oil prices and a softening in domestic equity markets.
In view of the weakness of the US currency in the overseas market, the rupee rose by 17 paise to 74.71 against the US dollar in early trade on Friday.
However, gains in the rupee were restricted amid a rise in crude oil prices and a softening in domestic equity markets.
In the interbank foreign exchange, the rupee opened at 74.71 against the US dollar, registering a gain of 17 paise from the previous close.
In the previous session, the rupee had closed at 74.88 against the greenback.
On the domestic front, investors will pay attention to cues from forex reserves data of the Reserve Bank of India.
Traders said that the weekly F&O expiry may keep the rupee in the short trade range.
The dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.25% lower at 95.14.
On the domestic equity market front, the 30-share Sensex was trading 92.57 points or 0.16% lower at 58,695.45, while the broader NSE Nifty was down 50.50 points or 0.29% at 17,509.70.
Global oil benchmark Brent crude futures rose 0.49% to $91.56 per barrel.
Foreign institutional investors were net sellers in the capital markets on Thursday as they sold shares worth Rs 1,597.54 crore, according to stock exchange data.
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