Indian currency in Thursday's trade opened higher at 68.74, appreciating as much as 0.1% versus previous close of 68.8187 per US dollar.
The bond yield also narrowed down to a 2.5 year low on declining oil prices which sent the bond prices higher. Bond market has been gaining ground amid expectations on the rate cut front, lower target for fiscal deficit and government's plans to finance its debt from overseas markets
Yield on 10-year benchmark bonds stood at 6.311%.
Meanwhile, in the pre-opening session, Sensex and Nifty were trading marginally lower tracking global cues.