The rupee inched up by three paise to 54.91 against the American currency in late morning trade on Friday on mild selling of dollars from banks despite its higher value overseas. The Indian rupee resumed higher at 54.87 per dollar as against the last closing level of 54.94 at the Interbank Foreign Exchange (Forex) Market.

It moved in a narrow range of 54.86 and 54.97 per dollar before quoting 54.91 at 1050 hrs.

In New York market, the Japanese yen fell against the US dollar yesterday to its lowest level since late 2010 after minutes from the Bank of Japan's November meeting showed some determination to drive the nation's currency lower.

Oil prices were up in Asia today after US President Barack Obama called an 11th-hour meeting with top Congressional leaders to negotiate an elusive deal to avoid the fiscal cliff, analysts said.

Meanwhile, the Indian benchmark BSE-30 share index, Sensex, firmed up by 94 points, or 0.49%, to 19,418.09 at 1050 hrs.