MUMBAI: The rebounded by 18 paise to 70.71 against the US dollar in early trade on Thursday.
At the interbank foreign exchange, the rupee witnessed high volatility against the US dollar.
The local unit opened strong at 70.80 and touched a high of 70.71 and a low of 70.83 against the American currency in early trade on Thursday.
The domestic unit was trading at 70.87 against the dollar at 1010 hrs.
On Wednesday, Rupee had settled at 70.89 against the American currency.
According to provisional exchange data, foreign institutional investors (FIIs) remained net sellers in the capital markets, pulling out Rs 383.66 crore on Wednesday.
The dollar index, which gauges the greenback's strength against a basket of six currencies, fell 0.01 per cent to 97.53.
Brent crude futures, the global oil benchmark, rose 2.74 per cent to trade at USD 57.77 per barrel.
Domestic bourses opened on a cautious note on Thursday with benchmark indices Sensex trading 37.01 points higher at 36,727.51 and Nifty up 5.75 points at 10,861.25.
The 10-year government bond yield was at 6.37 per cent in morning trade.
With inputs from PTI