The rupee appreciated 17 paise to 77.17 against the US dollar in opening trade on Wednesday as the American currency retreated from its elevated levels.

At the interbank foreign exchange, the rupee opened at 77.24 against the American dollar, then gained further ground to quote at 77.17, registering a rise of 17 paise from the last close. In initial deals the rupee also touched a low of 77.31 against the dollar.

"For the day, the market awaits the US CPI report which could give an indication as to where the prices could be topping. Domestic CPI numbers will also be released and expectations are between 7.5 to 8 per cent. RBI was present on Tuesday selling dollars to ensure an orderly depreciation in the rupee," said Anil Kumar Bhansali, Head of Treasury, Finrex Treasury Advisors.

On Tuesday, the rupee had settled at 77.34 against the American currency.

The dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.06 per cent lower at 103.85.

Forex traders said muted domestic equities, firm crude oil prices and persistent foreign fund outflows could weigh on the rupee and restrict its gain.

On the domestic equity market front, the 30-share Sensex was trading 27.61 points or 0.05 per cent higher at 54,392.46, while the broader NSE Nifty advanced 8.30 points or 0.05 per cent to 16,248.35.

Global oil benchmark Brent crude futures rose 1.83 per cent to USD 104.34 per barrel.

Foreign institutional investors were net sellers in the capital market on Tuesday as they offloaded shares worth Rs 3,960.59 crore, as per stock exchange data.