The rupee was trading in a narrow range against the US dollar in early trade on Wednesday, as the support from positive domestic equities was negated by strong American currency. Forex traders said elevated crude oil prices in the international market dented investors’ sentiments.

At the interbank foreign exchange, the rupee opened at 83.33 against the dollar and touched an early low of 83.34 in initial trade, registering a fall of 5 paise over its previous close. It was later trading at 83.31 against the American currency.

On Tuesday, the rupee recovered from all-time low levels and appreciated 32 paise to close at 83.29 against the US dollar.

“The Indian rupee is expected to be in a range with 83.40 being the Reserve Bank’s pivot beyond which the rupee could weaken further. It being month-end, quarter-end and year-end, some selling is expected to come in dollars, as exporters hedge their positions,” said Anil Kumar Bhansali, Head of Treasury and Executive Director Finrex Treasury Advisors LLP.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was at 104.38, higher by 0.08 per cent.

Brent crude futures, the global oil benchmark, fell 0.90 per cent to USD 85.47 per barrel.

In the domestic equity market, the 30-share BSE Sensex was trading 338.22 points, or 0.47 per cent, higher at 72,808.52 points. The broader NSE Nifty rose 102.15 points, or 0.46 per cent, to 22,106.85 points.

Foreign Institutional Investors (FIIs) were net buyers in the capital markets on Tuesday as they purchased shares worth Rs 10.13 crore, according to exchange data.

On the macroeconomic front, India’s current account deficit narrowed to USD 10.5 billion or 1.2 per cent of GDP in the October-December quarter as against USD 11.4 billion or 1.3 per cent in the preceding three months ending September, the Reserve Bank said on Tuesday.