The Indian rupee opened on a flat note and inched higher by 3 paise to 72.94 against the US dollar in early trade on Thursday as investors looked to key US inflation data and European Central Bank meeting later in the day for further cues.

At the interbank foreign exchange, the domestic unit opened at 72.96 against the dollar, then inched higher to 72.94, registering a gain of 3 paise over its previous close. The rupee also touched 72.98 against the American currency in initial deals.