The rupee was trading marginally lower at 54.31 in the afternoon trade amid strong industrial output data and increased capital flows into the domestic equity markets.
The Indian unit opened flat at 54.27 from Tuesday’s close and was trading steady at 54.33 in the first-half session of the trade. However, strong IIP data boosted the currency to 54.17 against the dollar at the Interbank Foreign Exchange market.
Increased foreign capital inflows, amid weakening of the American currency against the euro overseas, also supported the rupee.
At 1.21 pm, the rupee was trading marginally lower at 54.31 per dollar. Investors will also watch for the monthly inflation data due on Friday.
