The Indian rupee opened on a flat note and inched 4 paise higher to 74.30 against the US dollar in early trade on Tuesday amid cautious trade. Forex traders said price action remains subdued as investors are awaiting the Reserve Bank of India's (RBI) policy decision and the US non-farm payrolls data on Friday for further cues.

At the interbank foreign exchange, the domestic unit opened at 74.36 against the dollar, then inched higher to 74.30, registering a gain of 4 paise over its previous close. On Monday, the rupee had settled at 74.34 against the US dollar.