The rupee rebounded 14 paise to 83.05 against the US currency in early trade on Thursday as the dollar retreated from high levels in global markets after the US Federal Reserve indicated three rate cuts this year.

At the interbank foreign exchange market, the rupee opened strong at 83.07 against the US dollar compared to the previous close of 83.19. The local unit moved in a range of 83.08 to 83.04 in early deals.

The rupee traded at 83.05 to a dollar at 9.25 am, showing gains of 14 paise over the last close. It settled at a two-month low of 83.19 on Wednesday ahead of the announcement of US Fed policy amid a strong American currency and elevated crude oil prices.

The Indian currency gained strength as the US Federal Reserve indicated three rate cuts this year despite sticky inflation. The US Fed kept its interest rates unchanged in the policy meeting on Wednesday.

The US dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.20 per cent lower at 103.22.

Brent crude futures, the global oil benchmark, rose 0.63 per cent to $86.49 per barrel, recovering from overnight losses.

On the domestic equity market front, Sensex advanced 538.01 points to 72,639.70 while the Nifty rose 162.90 points to 22,002.

Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Wednesday as they sold shares worth ₹2,599.19 crore, according to exchange data.