Rupee rises 3 paise to Rs 72.34 against the US dollar in early trade

The rupee advanced by 3 paise to 72.34 against the US dollar in opening trade on Tuesday, as easing crude oil prices and buying trend in equity markets lifted sentiment.

The rupee's gains were, however, restricted as investors turned a bit cautious due to rising US dollar amid foreign fund outflows.

At the interbank forex market, the local unit opened flat at 72.37 against the US dollar, then gained some strength to quote at 72.34, a rise of 3 paise over its last close.

In the previous session, the rupee had settled at 72.37 against the American currency.

Global oil benchmark Brent crude futures fell 0.94 per cent to USD 64.01 per barrel.

On the domestic equity market front, the BSE Sensex was trading 90.66 points or 0.18 per cent higher at 49,861.95 in early deals, while the broader NSE Nifty rose 32.10 points or 0.22 per cent 14,768.50.

Foreign institutional investors were net sellers in the capital market on Monday as they sold shares worth Rs 786.98 crore, as per exchange data.

The dollar index, which gauges the greenback's strength against a basket of six currencies, rose 0.16 per cent to 91.88.