The Indian rupee inched higher by 8 paise to 72.97 against the US dollar in early trade on Wednesday amid a muted trend in the domestic equity market. At the interbank foreign exchange, the domestic unit opened on a flat note at 73.02 against the dollar, then inched higher and touched 72.97, registering a rise of 8 paise over its previous close. On Tuesday, the rupee had closed at 73.05 against the US dollar.

"Markets would look to cues from the equity markets in the intra-day session, while the weakness of the greenback could cap losses of the local unit," Reliance Securities said in a research note. Markets would also await the Fed meeting minutes for further cues, the note added. On the domestic equity market front, the 30-share BSE Sensex was trading 85.17 points or 0.17 per cent lower at 50,108.16. Similarly, the broader NSE Nifty declined 19.05 points or 0.13 per cent to 15,089.05.