The rupee opened lower by 6 paise at 67.41 as against yesterday's closing level of 67.35 per dollar at the Inter-bank Foreign Exchange (Forex) market.
The domestic unit hovered in a range of 67.43 to 67.35 during the morning deals before quoting at 67.37 per dollar at 1025 hrs.
The dollar index was trading down 0.22 per cent at 97.05 against a basket of six currencies in early trade.
Oil prices edged away from three-month lows at Asia trade, supported by a weaker dollar, but concerns of ongoing oversupply weighed on markets and many traders are raising their bets on further price falls.
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The US dollar strengthened slightly against the pound
yesterday, as the British currency sold off sharply, extending its fall to fresh multi decade lows while it softened against the euro.
Foreign funds remained net sellers for the third day and sold shares worth a net Rs 606.34 crore, as per exchanges data.
In the forward market, premium for dollar continued trade weak on sustained receiving by exporters.
The benchmark six-month premium for March softened to 147.5-149.5 paise from 150.5-152.5 paise yesterday and the forward-September 2017 contract also moved down further to 323-325 paise from 326-328.