Indian rupee trimmed its initial gains but was still quoted higher by 14 paise to 54.00 against the US currency in the late morning trade today on the back of sustained selling of dollars by banks and exporters in view of weakness of dollar in overseas market.
Fresh foreign capital inflows into equity market also boosted the rupee value against the dollar, forex dealers said.
The rupee resumed higher at 53.93 per dollar as against the last closing level of 54.14 per dollar at the Interbank Foreign Exchange (Forex) Market and moved in a range of 53.89 per dollar and 54.10 per dollar before quoting at 54.00 per dollar at 1040hrs.
In New York market, the US dollar and the Japanese yen dropped yesterday as investors sold the safe-haven currencies and bought gold and US stocks a day after the yellow metal led a global rout.
Meanwhile, the BSE benchmark Sensex moved up by 26.20 points, or 0.14 per cent, to 18,771.13 at 1040 hrs.