The rupee surrendered early gains against the American currency, but was still trading higher by 14 paise at 55.38 per dollar in the late morning trade on sustained selling of dollars from banks and exporters on persistent capital inflows from foreign funds.
Weak dollar in the overseas market also boosted the rupee value against the dollar.
The rupee resumed higher at 55.32 against dollar against the last closing of 55.52 at the Interbank Foreign Exchange (Forex) Market. It moved in the range of 55.30 and 55.43, before quoting at 55.38 per dollar at 1040 hrs.
In New York market, the euro extended gains against the dollar after rebounding on last week's stronger-than-expected US jobs data.
Meanwhile, the BSE benchmark Sensex rose by 108 points, or 0.62 per cent, in late morning trade.
