The Indian rupee trimmed its initial gains but was still quoted higher by 3 paise to 62.40 per dollar in late morning trade today on mild selling of the US currency by banks and exporters.
The Indian rupee resumed higher at 62.37 per dollar as against the last closing level of 62.43 at the Interbank Foreign Exchange (Forex) Market and firmed up further to 62.33 per dollar.
However, it trimmed its initial gains and was quoted at 62.40 per dollar at 1045 hours on some demand for the US currency from banks.
It moved in a range of 62.33 and 62.44 per dollar during the morning deals.
In Hong Kong, the dollar fell further in early trade against other major currencies, as global investors awaited Janet Yellen's first testimony as the new Federal Reserve chief, later in the day.
Meanwhile, the benchmark BSE Sensex rose by 75.23 points, or 0.37 per cent, to 20,409.50 at 1045 hours.