At the Interbank Foreign Exchange, the rupee opened sharply lower at 70.27 a dollar against its previous close of 70.06. The domestic currency moved in a range of 70.39 to 70.18 during the day, before closing at 70.35.
Brent crude futures dropped 3.78% to $53.20 per barrel.
On a net basis, foreign portfolio investors (FPIs) bought shares worth Rs80.28 crore on Wednesday, while domestic institutional investors (DIIs) were net sellers to the tune of Rs137.63 crore, provisional data available with BSE showed.
Meanwhile, the BSE benchmark Sensex jumped 157 points on Thursday amid expiry of December series derivatives contracts and positive global cues.
The Financial Benchmark India Private Ltd (FBIL) set the reference rate for the rupee/dollar at 70.3270 and for rupee/euro at 80.0223. The reference rate for rupee/British pound was fixed at 88.9829 and for rupee/100 Japanese yen at 63.25.