In Wednesday's trade, the domestic currency opened lower at 71.07 per US dollar after closing at 71.02 in yesterday's trade.
On Tuesday, the rupee dropped as market sentiment weakened due to FII outflows as well as choppy trade in the equities market after two continuous days of historical surge following the FM's announcement on cut back on corporate tax rate.
At the same time, the fall in crude oil price as well as weakness in dollar against the host of other major currencies capped further weakness in the Indian rupee.
Meanwhile, 10-year bond yield gained on the back of reports that said that government will maintain its borrowing plan for the remaining part of the fiscal year.
Further, equities market opened almost flat in pre-opening session.