The Indian rupee opened on a steady note at 71.53 against the US dollar in early trade on Thursday ahead of the Reserve Bank of India’s monetary policy decision.

Forex traders said the domestic unit was trading in a narrow range as investors are trading cautiously ahead of the RBI policy decision.The RBI’s Monetary Policy Committee is slated to announce its fifth bi-monthly policy decision for this fiscal later in the day.

At the interbank foreign exchange the rupee opened at 71.50, then lost ground and touched a low of 71.55.The domestic unit was later trading at 71.53 against the dollar at 0941 hours.Traders said muted opening in domestic equities and sustained foreign fund outflows also weighed on the domestic currency.