The Indian rupee opened higher at 70.80 per dollar in the early morning trade. Currently, the local unit is up 3 paise at 70.92/$. Besides, foreign fund outflows and rising crude oil prices also weighed on local currency.
On the economy front, the RBI, in its bi-monthly policy review, trimmed the repo rate by 35bps to 5.4% and reverse repo rate at 5.15%, with stance maintained as accommodative. Marginal standing facility (MSF) and bank rate adjusted to 5.65%.
On Wednesday, the rupee dropped 8 paise at 70.89 against the US dollar.
Meanwhile, oil futures jumped more than $1 a barrel on Thursday amid a weaker dollar, recovering ground after concerns that a global economic slowdown would hurt crude demand sparked losses of over 4% in the previous session.