Reuters Market Eye - The rupee rises to 55.53/54 compared to its 55.6450/6550 previous close on the back of dollar selling from custodian banks, while greenback demand from oil importers fizzles out at the start of a new month.
Oil refiners had been major buyers of dollars in the domestic currency market over the last few days to meet month-end import commitments.
USD/INR seen in a 55.40 to 55.70 band during rest of the session, say traders.
P. Chidambaram's appointment as new Finance Minister is a positive given his reformist image, but markets wait for actual action, say dealers.
Euro eases against the dollar as disappointment over China's manufacturing data ads to nerves in a market already growing doubtful about whether the Federal Reserve or the European Central Bank will take action to spur their economies.
"People are squaring off positions ahead of the Fed decision in the evening. There are some flows from custodians and corporates as well. Besides oil demand is out," a senior dealer with a private bank said.
