The rupee trimmed its initial gains but was still trading higher by two paise to 54.74 against the US currency in late morning trade due to mild buying and selling transactions of dollars from banks.The rupee resumed slightly higher at 54.75 a dollar as against the last weekend's level of 54.76 a dollar and hovered in the range of 54.82-54.70, before quoting at 54.74 at 1040hrs. Persistent capital inflows from foreign funds into the equity market mainly boosted the rupee value against the dollar, forex dealers said.Weak dollar in the overseas market was another factor behind the rise in the rupee value.