The rupee pared some of its initial gains but was still trading up by 15 paise at 63.89 on the back of dollar selling by banks and exporters. A rally in domestic equities too supported the rupee sentiment.

The rupee resumed higher at 63.87 against the last closing level of Rs 64.04 per dollar at the Interbank Foreign Exchange market today.

The domestic unit hovered between 63.91 and 63.87 during the morning deals, before quoting at 63.89 at 12 noon local time.

Overseas, the euro extended gains to a two-and-a-half-year high against the dollar amid lower expectations of further monetary tightening in the US.

Meanwhile, the benchmark BSE Sensex was trading higher by 155.09 points or 0.49 per cent at 31,751.15.