Mumbai: The rupee rose 3 paise to 88.72 against the US dollar in early trade on Tuesday on the back of a fall in crude oil prices and positive sentiments in the domestic equity markets.

However, a marginally stronger greenback, coupled with FII outflows, prevented sharper gains in the local unit, according to forex traders. They added that the markets are awaiting the Reserve Bank of India's (RBI's) Monetary Policy Committee decision, which will be announced on Wednesday.

At the interbank foreign exchange, the rupee opened at 88.73 against the US dollar before inching up to 88.72, higher by 3 paise from its previous close.

Rupee consolidated in a narrow range and settled lower by 3 paise at 88.75 against the greenback on Monday.

"FPIs continue to be sellers in equity markets taking rup

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