The rupee on Wednesday opened 12 paise lower at 71.83 against the US dollar amid decline in crude oil prices and fall in Asian equities over US-China trade deal uncertainties. The domestic unit on Tuesday settled 13 paise higher at 71.71.
Forex traders said the rupee on Tuesday consolidated in a narrow range following lack of cues on the domestic as well as the global front. During the day, the domestic unit fluctuated between a high of 71.68 and a low of 72.
Foreign institutional investors (FIIs) remained net sellers in the capital markets on Tuesday, as they pulled out Rs 915.37 crore on Tuesday, exchange data showed.
"Today, USD/INR pair is expected to quote in the range of 71.70 and 72.20," said Gaurang Somaiya, Research Analyst (Currency) at Motilal Oswal Securities.
On the global front, Asian shares stumbled on Wednesday as the Sino-US trade talks produced nothing but a stream of conflicting messages, while concerns about a glut of supply left oil prices nursing their biggest one-day loss in seven weeks. In commodities, Brent crude futures eased another 5 cents to $60.86 a barrel, after sliding 2.6 per cent overnight, while US crude recouped a slight 8 cents to $55.29, according to a Reuters report.
In the currency market, the euro held at $1.1070 and faced chart resistance around $1.1090. The US dollar was steadier on a basket of currencies at 97.901, the report added.