Mumbai: The rupee today (Dec 26, 2006) witnessed volatile trade and was quoted modestly higher against the US currency in morning dealings on alternate bouts of buying and selling amid strong dollar overseas.

In fairly erratic trade at the interbank foreign exchange (Forex) market, the Indian unit resumed weak at Rs 44.60/62 a dollar from Friday's close of Rs 44.56/57 per dollar, but later rebounded to Rs 44.53/54 per dollar in late morning deals.

There was good dollar buying in forward trade alternated by dollar sales in Cash in early trade, a Forex dealer said.

Meanwhile, the dollar hit an eight-week high against the yen on Friday.