The Indian rupee trimmed its initial gains but was still trading higher by two paise to 54.74 against the US dollar in late morning trade on Monday due to mild buying and selling transactions of dollar from banks. The Indian currency resumed slightly higher at 54.75 a dollar against last weekend's level of 54.76 a dollar and hovered in the range of 54.82-54.70, before quoting at 54.74 at 10.40 am. Persistent capital inflows from foreign funds into the equity market mainly boosted the rupee value against the dollar, forex dealers said. Weak dollar in the overseas market was another factor behind the rise in the rupee value. In New York, the dollar declined against the euro last Friday, with the shared currency extending gains on optimism about a return to normalcy in Eurozone financial markets. Meanwhile, the BSE Sensex was trading 148.70 points higher at 19,812.34 in late morning trade.

Source