The Indian rupee opened on a flat note and appreciated by 3 paise to 95.34 against the US dollar in early trade on Tuesday.
The local currency found support from a weaker US Dollar Index, aided by improving global risk sentiment and lower crude oil prices. However, gains were capped by persistent dollar demand from importers.
Market participants are now awaiting the RBI Monetary Policy Committee (MPC) decision and key US economic data later this week, which are expected to provide further direction to the currency markets.