The Indian rupee resumed higher at 62.30 per US dollar as against the last closing level of 62.41 at the Interbank Foreign Exchange Market and firmed up further to 62.20 a dollar.
However, it trimmed its initial gains and was quoted at 62.31 per US dollar at 1045 hrs.
It hovered in a range of 62.20-62.35 per dollar during the morning deals.
Banks and exporters preferred to reduce their dollar position on hopes of more foreign capital inflows in view of rising equity market.
Meanwhile, the benchmark BSE Sensex rose by 263.86 points, or 1.28 per cent, to 20,798.77 at 1045 hrs.
Quotes: Markets Top Gainers, Markets Top Losers
Crude Oil was flat in thin Asian trade today after the Thanksgiving holiday in the United States, with investors increasingly concerned over growing US crude stockpiles, analysts said.