The rupee traded flat at 83.49 against the US currency in the early session on Wednesday amid losses in domestic equities and easing crude oil prices.
At the interbank foreign exchange market, the rupee opened flat at 83.49 against the US dollar. The local currency moved in a restricted range of 83.49 to 83.50 against the greenback in early trade.
The rupee had edged up 1 paisa to close at 83.49 against the US dollar on Tuesday ahead of the key testimony of US Federal Reserve Chair Jerome Powell in front of Congress.
Powell's testimony offered little new guidance on the US central bank's plans for when it might cut interest rates.
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, eased 0.03 per cent from overnight high levels to 105.09.
Brent crude, the global oil benchmark, declined 0.26 per cent to $84.44 per barrel in futures trade.
In the domestic equity market, the 30-share BSE Sensex dropped by 143.15 points or 0.18 per cent to close at 80,208.49. The broader NSE Nifty declined 27.20 points, or 0.11 per cent, to 24,406.
Foreign Institutional Investors (FIIs) were net buyers in the capital markets on Tuesday, as they purchased shares worth ₹314.46 crore, according to exchange data.