The rupee turned almost flat and gained 1 paisa to 87.30 against the US dollar in early trade on Tuesday on the back of weaker American currency and lower level of crude oil prices.
However, volatile domestic equity markets amid fear of recession in the US and trade-related uncertainties impacted investor sentiment adversely, forex traders said.
At the interbank foreign exchange, the rupee opened at 87.37, slipped to 87.39 and then slightly strengthened to 87.30 against the greenback in early deals, registering a gain of 1 paisa from its previous closing level.
On Monday, the rupee sank 36 paise to close at 87.31 against the US dollar.
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading lower by 0.20 per cent at 103.75.
Brent crude, the global oil benchmark, rose 0.01 per cent to USD 69.29 per barrel in futures trade.
In the domestic equity market, the 30-share BSE Sensex was trading 424.36 points, or 0.57 per cent, l