Rupee turns flat at 84.42 against US dollar in early trade

The rupee turned flat at 84.42 against the US dollar in early trade on Thursday amid volatile crude oil prices and lackluster sentiment in the domestic equity markets.

A weaker American currency supported the local unit, but it was weighed down by the relentless outflow of foreign funds, forex traders said.

At the interbank foreign exchange, the rupee opened at 84.41 and slipped further to 84.42 against the greenback, trading at its previous closing level in early deals.

On Tuesday, the rupee settled flat at 84.42 against the US dollar. The foreign exchange market was closed on Wednesday due to assembly elections in Maharashtra.

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading lower by 0.11 per cent at 106.49.

Brent crude, the global oil benchmark, rose by 0.22 per cent to USD 72.97 per barrel in futures trade.

On the domestic equity market front, Sensex was trading 398.45points, or 0.51 per cent lower, at 77,179.93 points. The Nifty fell 136.10 points, or 0.58 per cent, to 23,382.40 points.

Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Tuesday, as they offloaded shares worth Rs 3,411.73 crore, according to exchange data.