Indian rupee opened 4 paise higher at 66.69 against the US dollar on Wednesday due to fresh selling of American currency by banks and exporters. At 9.38 am, the local currency was trading 5 paise up at 66.68.
Meanwhile, domestic equity markets opened on a cautious note on Wednesday tracking global cues. At 9.41 am, the BSE Sensex was trading 26.47 points, or 0.09 per cent, down at 28033.68, while the Nifty 50 index was down 2.15 points, or 0.02 per cent, at 8675.75.
According to dealers, the dollar faced some headwinds against other currencies overseas after core US inflation rose less than expectation in September. Continued inflows by foreign funds too supported the uptrend.
Rupee on Tuesday gained 12 paise to 66.76 against the US dollar due to fresh selling of the American currency by exporters and banks amid a higher opening in the domestic stock market.