MUMBAI: The rupee appreciated by 27 paise to 70.80 against the US dollar in early trade on Friday.
At the interbank foreign exchange, the rupee opened at 70.82, then gained further ground and touched a high of 70.80, registering a rise of 27 paise over its previous close.
On Thursday, the rupee had settled at 71.07 against the US dollar.
However, the domestic unit could not hold on to the gains and was trading at 70.92 against the dollar at 1012 hrs.
Domestic bourses opened on a positive note on Friday with benchmark indices Sensex trading 425.29 points higher at 38,305.69 and Nifty up 110.75 points at 11,345.30.
The dollar index, which gauges the greenback's strength against a basket of six currencies, fell 0.04 per cent to 98.66.
According to provisional exchange data, Foreign institutional investors (FIIs) remained net sellers in the capital market, pulling out Rs 263.11 crore on Thursday.
Brent crude futures, the global oil benchmark, rose 0.54 per cent to trade at USD 59.42 per barrel.
The 10-year government bond yield was at 6.48 per cent in morning trade.
With inputs from PTI