The Indian rupee inched higher by 5 paise to 75.03 against the US dollar in opening trade on Tuesday amid a positive trend in domestic equities.
At the interbank foreign exchange, the rupee opened at 75.05 against the dollar, then rose to 75.03, registering an increase of just 5 paise over its previous close.
The rupee on Monday had settled at 75.08 against the US dollar.
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, rose 0.10 per cent to 93.90.
"Crude and USD 10-year yields are stable. Evergrande crisis has also calmed down. Market is now waiting for what the US Fed has to say on November 3," said Anil Kumar Bhansali, Head of Treasury, Finrex Treasury Advisors.
Meanwhile, exporters can sell near 75.15/20 for their near-term exports, while importers may buy near 74.90, Bhansali said, adding "expecting some inflows of the two IPOs starting in the weekend".
Foreign institutional investors were net sellers in the capital market on Monday as they offloaded shares worth Rs 2,459.10 crore, as per exchange data.
On the domestic equity market front, BSE Sensex was trading 348.13 points or 0.57 per cent higher at 61,315.18, while the broader NSE Nifty advanced 115.15 points or 0.64 per cent to 18,240.55.
Global oil benchmark, Brent crude futures, rose 0.24 per cent to USD 86.20 per barrel.