Rupee firmed up by 14 paise to quote at 65.27 against the US currency in late morning deals on sustained bouts of dollar selling by banks and exporters amid weakness in dollar overseas.
"Continued capital inflows and rally in domestic equities influenced the rupee sentiment," a forex dealer said.
Earlier, the rupee opened higher at 65.29 per dollar as against yesterday's level of 65.41 per dollar at the Interbank Foreign Exchange (Forex) market.
It hovered in the range of 65.36 to 65.26 per dollar during the morning deals before quoting 65.27 at 1030 hrs.
The dollar index currently trades down by 0.01% at 95.45 as against a basket of six currencies.
The dollar weakened against major currencies yesterday as expectations of a Fed rate hike before year-end ebbed.