Continuing its upward journey for a third straight day, the rupee strengthened by another 10 paise to 70.97 against the US dollar at the interbank forex market Friday on increased selling of the American currency by exporters and banks.

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Dealers said dollar's weakness against some currencies overseas and early gains in domestic equity market supported the rupee.

On Thursday, the rupee had gained 26 paise to end at 71.07 against the US dollar as gains in domestic equities bolstered forex market sentiments.

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The benchmark BSE Sensex rallied by 253.42 points, or 0.71 per cent, to 36,448.52 in opening trade Friday. 

Meanwhile, foreign portfolio investors (FPIs) sold shares worth a net of Rs 94.45 crore, and domestic institutional investors (DIIs) purchased shares worth Rs 389.96 crore Thursday, provisional data showed.