The Indian rupee appreciated 7 paise to 83.90 against the US dollar in early trade on Wednesday, as the American currency retreated from its elevated levels.

Forex traders said the US dollar has weakened against majors post the US Producer Price Index (PPI) print, which came in softer than anticipated, leaving the Dollar Index vulnerable to further correction.

At the interbank foreign exchange, the rupee opened at 83.90 against the greenback, registering a gain of 7 paise over its previous close.

On Tuesday, the rupee settled for the day on a flat note at 83.97 against the US dollar.

The Reserve Bank of India has been holding the 84.00 psychological mark, said Anil Kumar Bhansali, Head of Treasury and Executive Director Finrex Treasury Advisors LLP.

"The rupee is expected to open around 83.91 slightly stronger with a narrow range of 83.87/83.97, as the market awaits the Indian trade data for July-24," Bhansali added.

Forex traders said market participants are also awaiting cues from the CPI data from the US scheduled to be released later in the day.

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading marginally higher by 0.10 per cent at 102.66.

Brent crude, the global oil benchmark, advanced 0.57 per cent to USD 81.15 per barrel.

On the domestic equity market front, Sensex declined 24.66 points, or 0.03 per cent, to 78,931.37 points. The Nifty fell 11.10 points, or 0.05 per cent, to 24,127.90 points.

Foreign institutional investors (FIIs) were net sellers in the capital markets on Tuesday as they offloaded shares worth Rs 2,107.17 crore, according to exchange data.

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