The domestic unit resumed higher at 66.34 per dollar as against yesterday's level of 66.43 at the Interbank Foreign Exchange (Forex) market.
It hovered in a range of 66.32 to 66.4150 during the morning deals before quoting 66.38 per dollar at 1030 hrs.
"Strength in USD will keep rupee under pressure, investors are expected to trade cautiously and square off their positions ahead of the weekend, a forex dealer said.
The dollar index is currently down 0.02 percent at 95.48 against a basket of six currencies.
Crude prices gained overnight on strong US demand for gasoline, but news of increased US inventories of crude kept prices under check. Brent Crude was trading above USD 48 per barrel.
Meanwhile, the benchmark BSE Sensex was trading up by 151 points or 0.59 percent at 25,772.93 at 1035-hrs.


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