The rupee trimmed its initial gains, but was trading still up by 3 paise to 67.71 against the US dollar on bouts of selling of greenback by banks and exporters in view of higher domestic equities.
The currency opened higher by 6 paise at 67.68 per dollar as against Tuesday’s level of 67.74 at the Inter-bank Foreign Exchange (Forex) market.
It hovered in the range of 67.7225 to 67.61 per dollar during the morning deals, before quoting 67.71 at 1025 hrs.
The dollar Index is trading down 0.14 per cent at 100 against a basket of six currencies.
Overseas, the dollar stood near an 11-mth high against a basket of currencies early Wednesday, after upbeat US data gave the greenback’s week-long rally fresh impetus.
The greenback got its latest boost from stronger-than-expected US October retail sales data out yesterday, which lifted Treasury yields and reinforced the outlook for a Federal Reserve interest rate hike in December.
Meanwhile, the benchmark BSE Sensex was trading higher by 171.35 points or 0.65 per cent at 26,475.98 at 1030hrs.