Mumbai: The rupee pared its initial gains to trade higher marginally by 3 paise to 55.55 against the American currency in the late morning trade on fresh dollar selling by exporters and some banks amidst firm dollar overseas.

The rupee resumed higher at 55.40 per dollar against yesterday’s close of 55.58 per dollar at the Interbank Foreign Exchange (Forex) Market.

It later moved down to 55.