The rupee pared initial losses to trade marginally higher at 65.03 on mild dollar selling by banks and importers.

The domestic unit resumed lower at 65.08 per dollar against the previous closing level of 65.04 at the interbank foreign exchange market today.

It hovered in a range of 65.11 and 65.20 before quoting at 65.03, up 1 paise at 11.10 am local time.

The forex market was closed on Thursday and Friday on account of Diwali holidays.

Overseas, the dollar touched a three-month high against the yen, with an emphatic election victory for Japan’s ruling party keeping yen-weakening stimulus measures at the heart of government policy.

Meanwhile, the benchmark BSE Sensex was trading up by 79.18 points or 0.24 per cent at 32,469.14.