The rupee resumed higher at 59.69 per dollar as against the last closing level of 59.73 at the Interbank Foreign Exchange market.
It firmed up further to 59.60 per dollar on initial selling of the greenback by banks due to persistent foreign capital inflows into the equity market.
However, it trimmed its initial gains and was quoted at 59.72 per dollar on some demand for the US currency from banks in view of higher dollar in the overseas market.
It moved in a range of 59.60 and 59.73 per dollar during the morning deals.
In New York, the US dollar strengthened against its rivals yesterday after a jobs report surpassed expectations, but stopped short of a sharp move higher as traders said the data weren't strong enough to shift monetary policy expectations.
Meanwhile, the Indian benchmark 30-share index Sensex firmed up by 50.45 points, or 0.20 per cent, to 25,874.20 at 1000 hours.