The rupee resumed higher at 61.95 per dollar as against the last closing level of 62.07 at the Interbank Foreign Exchange market.
However, it trimmed its initial gains against the dollar on month-end dollar demand from importers, mainly oil refiners, to quote at 62.01 per dollar at 1045 hours.
The rupee moved in the range of 61.95-62.04 per dollar during the late morning deals.
In New York, the US currency fell against the Australian dollar and British pound yesterday as investors continued to weigh the potential weather drag on recent economic data, and whether or not it could sway monetary policy.
Meanwhile, the Indian benchmark Sensex firmed up by 49.84 points, or 0.24 per cent, to 20,861.28 at 1045 hours.