The Indian rupee gained 23 paise to Rs. 45.85 per US dollar in late morning trade today amid selling of dollars by banks and exporters in view of the resumption of foreign capital inflows despite firm dollar in global market.

The rupee resumed higher at Rs. 45.98/99 per dollar on the Interbank Foreign Exchange as against Tuesday’s close of Rs. 46.08/09 per dollar and moved up further to Rs. 45.85 per US dollar before quoting at Rs. 45.92/93 per US dollar at 1130 hours.

Selling of dollars by banks and exporters on the back of rising trend in equity market mainly boosted the rupee value against the dollar, a forex dealer said.

However, the dollar advanced against major currencies in New York market yesterday after a gauge of US manufacturing activity unexpectedly improved.

More In: Business | Markets