The Indian rupee on Friday opened on a flat note at 71.06 against the US dollar, tracking volatility in domestic equities and unabated foreign fund outflows.

At the interbank foreign exchange, the rupee opened at 71.06, showing a decline of 4 paise over its previous closing.

The Indian rupee on Thursday closed at 71.02 against the US dollar.

The domestic currency recovered some lost ground and was trading at 70.98 against the US dollar at 0940 hrs.

Traders said rupee is trading in a narrow range as market is awaiting fresh cues on the potential US-China trade deal.

Meanwhile, brent crude futures, the global oil benchmark, fell 0.58 per cent to USD 61.31 per barrel.

Foreign institutional investors remained net sellers in the capital markets, pulling out Rs 72.87 crore on Thursday, as per provisional data.

Domestic bourses opened on a cautious note on Friday with benchmark indices Sensex trading 28.16 points up at 39,048.55 and Nifty rising 9.20 points to 11,591.80.

The dollar index, which gauges the greenback's strength against a basket of six currencies, rose 0.06 per cent to 97.69.

The 10-year government bond yield was at 6.50 per cent in morning trade.