The rupee resumed higher at 60.98 per dollar as against the last closing level of 61.13 per dollar at the Interbank Foreign Exchange (Forex) Market on initial selling of dollars by banks and exporters in view of heavy capital inflows from foreign funds into equity market.
However, it washed out opening gains due to fresh dollar demand from importers to quote at 61.25 per dollar at 1045 hrs.
It moved in a range of 60.98 and 61.27 per dollar during the morning deals.
Meanwhile, the BSE benchmark Sensex dropped by 95.31 points, or 0.45 per cent, to 21,231.11 at 1050 hrs.