The Indian rupee opened flat against the US dollar on Thursday, gaining 1 paisa to trade at 84.07 in early deals. This marginal increase comes amid a strong dollar and ongoing foreign fund outflows that have affected investor sentiment.

Forex traders noted that the rupee remained range-bound, primarily influenced by month-end demand which kept the US dollar in high demand. Furthermore, a subdued performance in domestic equities also weighed on the local currency. Analysts believe that any intervention by the Reserve Bank of India (RBI) could provide support to the rupee at lower levels.