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Mumbai, July 15 (PTI) The rupee was trading flat at 85.92 against the US dollar in early trade on Tuesday amid a weaker greenback against overseas currencies and a dip in global crude oil prices.

However, FII outflows and continuing uncertainty over the outcome of the India-US trade talks prevented a rise in the domestic unit, according to forex traders.

At the interbank foreign exchange, the rupee opened at 85.97 against the greenback before inching up to 85.92 - the same level as its previous close. The rupee depreciated 12 paise to close at 85.92 against the US dollar on Monday.

The rupee fell yesterday (Monday) and today opened lower as the dollar index remains up while Asian currencies are slightly weaker from yesterday. The Reserve Bank of India (RBI) sold dollars on Monday, and we wait to see if it continues to do so,Anil Kumar Bhansali, Head of Treasury and Executive Director, Finrex Treasury Advisors LLP, said.

FPIs were net sellers of shares on Monday and therefore dollar buyers. The CPI of India also came lower at 2.1 per cent, indicating a deflation-type situation, giving the RBI another opportunity to cut rates, he said.

Retail inflation declined to over a six-year low of 2.1 per cent in June, nearing the RBI's comfort zone, on account of subdued prices of food items, including vegetables, driven by widespread monsoon.

Wholesale price inflation (WPI) turned negative after a gap of 19 months, declining 0.13 per cent in June as deflation widened in food articles and fuel, along with softening in manufactured product costs, government data showed on Monday.

Brent crude, the global oil benchmark, was down 0.42 per cent to USD 68.92 per barrel in futures trade.