The rupee is still trading higher by 12 paise against the US dollar at 66.21 in late-morning trade on a sustained bout of dollar selling by banks and exporters.
The rupee resumed higher at 66.26 as against Monday's closing level of 66.33 at the Inter-bank Foreign Exchange market.
It moved in a range of 66.30 and 66.22 during the morning deals before quoting at 66.21 at 1121 hours.
The dollar index was up 0.08 per cent at 98.30 against a basket of six currencies in the early trade.
Overseas, the dollar edged down in Asian early trading today after data overnight painted a mixed picture of the US economy, with major currency pairs trading in a narrow range as traders wound down in a holiday-heavy week.
In New York, the euro edged higher against the dollar yesterday, adding to gains from the previous day, as oil prices recovered slightly.
