The Indian rupee declined 3 paise to 74.27 against the US dollar in opening trade on Tuesday, tracking the firm American currency.
At the interbank foreign exchange, the rupee opened at 74.23 against the dollar, then fell further to 74.27, registering a fall of 3 paise over its previous close amid muted domestic equities.
On Friday, the rupee had settled at 74.24 against the US dollar.
The forex market was closed on Monday on account of 'Parsi New Year'.
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading up 0.09 per cent at 92.70.
Global oil benchmark Brent crude futures rose 0.03 per cent to USD 69.53 per barrel.
On the domestic equity market front, BSE Sensex was trading 1.69 points higher at 55,584.27, while the broader NSE Nifty inched 0.85 points or 0.01 per cent higher to 16,563.90.
Meanwhile, foreign institutional investors were net sellers in the capital market on Monday as they offloaded shares worth Rs 1,088.32 crore, as per exchange data.
