The rupee rose 4 paise to 83.01 against the US dollar in early trade on Friday, tracking positive cues from the domestic equity markets.

Forex traders said a strong American currency and elevated crude oil prices, however, weighed on the local unit.

At the interbank foreign exchange, the domestic currency opened at 83.03 and inched up to 83.01 against the greenback in initial deals, registering a gain of 4 paise from its previous close.

On Thursday, the rupee settled 3 paise lower at 83.05 against the US dollar.

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was 0.12 per cent up at 104.32.

Brent crude futures, the global oil benchmark, were trading 0.07 per cent lower at $82.80 per barrel.

In the domestic equity market, the 30-share BSE Sensex was trading 302.55 points or 0.42 per cent higher at 72,352.93 points. The broader NSE Nifty advanced 95.90 points or 0.44 per cent to 22,006.65 points.

Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Thursday, as they sold shares worth Rs 3,064.15 crore, according to exchange data.

Government data released on Thursday showed the country's exports increased 3.12 per cent on-year to $36.92 billion in January. Imports rose by about 3 per cent to $54.41 billion and the trade deficit stood at $17.49 billion.