The rupee trimmed its early gains against the US currency, but was still quoted up by 23 paise to 61.42 on bouts of dollar selling by banks and exporters on the back of weak greenback overseas. The rupee resumed sharply higher at 61.10 per dollar as against the last closing level of 61.65 at the Interbank Foreign Exchange, Forex Market and moved up further to 61.05. However, it failed to maintain initial gains and was quoted at 61.42 per dollar at 1040 hrs on US currency demand from importers.In New York, the dollar weakened against euro late yesterday after US employment data signalled the Federal Reserve would extend its rate-depressing bond-buying programme to 2014.