The Indian rupee strengthened against the U.S. dollar in the morning session on Thursday, as regional shares rose on receding worries about a U.S. presidential impeachment bid and investors became hopeful about the next round of U.S.-China trade talks.

The benchmark S&P BSE Sensex rallied 326 points, or 0.84 percent, to 38,919 while the broader NSE Nifty index was up 102 points, or 0.89 percent, at 11,542.

The Indian rupee hit a 2-day high of 70.66 against the greenback, from yesterday's closing value of 70.91. The rupee is likely to find resistance around the 69.00 level.

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