The Indian rupee stabilised further against the American currency in the late morning trade by surging 24 paise to 54.75 per dollar on persistent selling of dollar by banks and exporters on the back of sustained capital inflows despite firm dollar overseas.
The rupee resumed higher at 54.83 per dollar as against the last closing level of 54.99 per dollar at the Interbank Foreign Exchange (Forex) Market and firmed up further to 54.70 before quoting at 54.75 per dollar at 1040 hrs.
It moved in a range of 54.70 per dollar and 54.86 per dollar during the morning deals. Persistent selling of dollars by banks and exporters mainly boosted the rupee sentiment, forex dealer said.
Foreign institutional investors (FIIs) bought shares worth a net Rs 826.34 crore yesterday as per provisional data from the stock exchanges.
The Indian benchmark Sensex firmed up by 142 points or 0.73 per cent to 19,568.75 at 1050 hrs.
In New York, the US dollar rose as lawmakers had reached agreement on the tax portion of a "fiscal cliff" deal.