The rupee resumed higher at 61.51 per dollar as against the last closing level of 61.75 at the Interbank Foreign Exchange market. It surged further to 61.40 on good dollar selling before quoting at 61.41 at 1045 hours.
It hovered in a range of 61.40 and 61.54 per dollar during the morning deals.
In New York, the dollar gave up most of its earlier gains against the major rivals late yesterday as investors weighed weak US economic data.
Meanwhile, the benchmark Sensex rallied 99.11 points or 0.47 per cent to 21,375.97 at 1045 hours.