The rupee pared some its initial gains to trade at 63.89 per dollar, up by 16 paise, in late morning deals on sustained bouts of dollar selling from banks and exporters amid weak dollar overseas.
The rupee resumed sharply higher at 63.85 per dollar at the interbank foreign exchange (Forex) against yesterday's closing level of Rs 64.05 per dollar. The domestic unit hovered between 63.83 and 63.91 during morning deals.
A weak dollar overseas boosted the rupee sentiment, a dealer said. Globally, the US dollar was lower against a basket of six currencies in early Asian trade, and the euro hovered below a 2-1/2-year high vs dollar. Meanwhile, the benchmark BSE Sensex was marginally higher by 8.69 points or 0.03 per cent at 31,671.43 at 1050 hrs. PTI
