In line with equity market, the rupee trimmed its earlier gains but was still quoted up by 15 paise at 54.17 per dollar on mild selling of the American currency from banks amid persistent foreign capital inflows in stock market.
The rupee resumed higher at 54.15 per dollar as against the last closing level of 54.32 at the Interbank Foreign Exchange (Forex) Market and moved up further to a high of 54.10.
However, it failed to maintain earlier gains and was quoted at 54.17 per dollar at 1050 hrs.
It hovered in a range of 54.10 and 54.23 per dollar during the morning deals.
In New York market, the US dollar dropped against most major rivals yesterday after the Federal Reserve outlined a new round of monetary stimulus and tied its interest-rate expectations to new thresholds for the country's unemployment rate and inflation.
Meanwhile, the Indian benchmark BSE-30 index, Sensex, resumed higher at 19,403.66 and firmed up further to 19,421.72 before quoting 19,373.90 at 1100 hrs, showing a gain of 18.64 points or 0.10 per cent from its last close.
