The Indian rupee settled just 1 paisa lower at 74.44 (provisional) against the US dollar on Wednesday amid a muted trend in the domestic equity market.
At the interbank forex market, the local unit opened at 74.43 against the greenback and witnessed an intra-day high of 74.37 and a low of 74.48.
It finally ended at 74.44 against the American currency, registering a fall of just 1 paisa over its previous close.
On Tuesday, the rupee had settled at 74.43 against the US dollar.
"Indian rupee settled flat on the back of the lacklustre movement, taking cues from other Asian currencies. Spot USD/INR is expected to trade in the range of 74.10 to 74.60," said Dilip Parmar, Research Analyst, HDFC Securities.
On the overseas front, the softness seen in the Euro has helped to lift the greenback towards the 4-month highs in late July, heads for fourth straight gains against a basket of peers, Parmar added.
Looking ahead, the eagerly-anticipated US CPI report highlights Wednesday's calendar, which is otherwise quiet, he further noted.
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, advanced 0.11 per cent to 93.16.