MUMBAI: The rupee rebounded 25 paise to 68.33 against the US dollar in early trade on Thursday.
At the interbank foreign exchange market, the domestic unit opened on a firm footing at 68.31 but soon pared some gains to trade at 68.33, up 25 paise over its previous close.
on Wednesday, the rupee had declined by 7 paise to close at 68.58 against the US dollar.
As per provisional data, foreign institutional investors (FIIs) pulled out a net Rs 604.94 crore on Wednesday.
Domestic equity benchmark BSE Sensex jumped over 200 points in early trade on Thursday tracking strong cues from global markets following Powell's remarks.
The 30-share index, however, gave up some gains to trade 106.35 points or 0.28 per cent, higher at 38,663.39 at 0930 hours.
Similarly, the broader Nifty rose 33.80 points, or 0.29 per cent, to 11,532.70.
The dollar index, which gauges the greenback's strength against a basket of six currencies, slipped 0.23 per cent to 96.87.
Brent crude futures, the global oil benchmark, rose 0.36 per cent to USD 67.25 per barrel amid reduced US inventories and geopolitical tensions.
With inputs from PTI