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The Indian rupee started the session on a flat note against the US dollar on Thursday amid strong American currency and a firm trend in the Indian equities.
Besides, unabated foreign fund outflows and fluctuations in international crude prices weighed on investor sentiments, forex traders said.
At the Indian interbank foreign exchange, the rupee opened slightly strong at 76.28 against the US dollar (20.78 versus the UAE dirham) but soon shed the gains to quote at 76.31, registering a fall of just 1 paisa over the last close.
In the previous session, the rupee rose by 20 paise to close at 76.30 against the dollar.
The dollar index, which gauges the greenback's strength against a basket of six currencies, surged 0.14 per cent to 100.56.
On the Indian equity market front, the 30-share Sensex was trading 381.36 points or 0.67 per cent higher at 57,418.86 points while the broader NSE Nifty advanced 106 points or 0.62 per cent to 17,242.55 points.
Global oil benchmark Brent crude futures rose 1.23 per cent to $108.11 per barrel.
(with inputs from PTI)
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