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The rupee trimmed its initial gains, but was quoted still higher by five paise to 54.09 against the American currency on the back of sustained selling of dollars by exporters amid continued capital inflows into equities.
The rupee opened higher at 54.10 per dollar against yesterday's closing level of Rs 54.14 per dollar at the Interbank Foreign Exchange (forex) market. It moved in a range of 54.05 per dollar and 54.14 per dollar before quoting at Rs 54.09 per dollar at 1040 hrs.
"Sustained capital inflows weighed the rupee sentiment," a dealer said.
At overseas, the US dollar weakened against Australian currency after China — Australia's largest trading partner — swung to a monthly trade surplus.
The Indian benchmark Sensex continued to rule firm in late morning trade to quote at 19,947.26, showing a gain of 58.31 points or 0.29 per cent.
