The Indian rupee opened on a steady note at 71.30 against the US dollar in early trade on Friday, a day after the Reserve Bank of India kept the key policy rate unchanged and decided to continue with its accommodative stance to support the economy.
Forex traders said that the domestic unit was trading in a narrow range as investors are awaiting fresh cues on the US-China trade front. At the interbank foreign exchange, the rupee opened at 71.30. The local unit fluctuated between a high of 71.27 and a low of 71.34 in early trade.
On Thursday, the rupee had settled for the day at 71.29 against the US dollar. Traders said positive opening in domestic equities, easing crude oil prices and fresh foreign fund inflows supported the domestic currency.
Meanwhile, domestic bourses opened on a positive note on Friday with benchmark indices Sensex trading 99.17 points higher at 40,878.76 and Nifty up 21.80 points at 12,040.20. The dollar index, which gauges the greenback's strength against a basket of six currencies, fell marginally by 0.04 per cent to 97.37.
Brent crude futures, the global oil benchmark, fell 0.46 per cent to trade at USD 63.10 per barrel. Foreign institutional investors (FIIs) remained net buyers in the capital market, as they purchased shares worth Rs 653.36 crore on Thursday, according to provisional exchange data.
The 10-year government bond yield was at 6.62 per cent in early trade. Meanwhile, on the global front, China's government has said that the United States must roll back punitive tariffs on Chinese goods if the two sides reach a trade deal.