The rupee gained eight paise to 62.15 against the US currency in late morning trade today on selling of dollars by banks and exporters on persistent foreign capital inflows into equities.
The rupee resumed higher at 62.19 per dollar as against the last closing level of 62.23 per dollar at the Interbank Foreign Exchange (Forex) Market.
It hovered in a range of 62.20-62.09 per dollar before quoting at 62.15 at 1045 hours.
Sustained foreign capital inflows coupled with recovery in the equity market mainly boosted the rupee value against the dollar, a forex dealer said.
The Sensex rose by 186.62 points, or 0.91 per cent, to 20,723.26 at 1045 hours.
However, in New York market, the US dollar gained against many of its rivals yesterday despite mixed data that raised questions about economic growth.