Rupee trades higher at 54.88/89 versus previous close of 54.99/55.00 as dollar demand from oil firms gets offset by some corporate dollar sales.
Traders say a large petrochemical company sold dollars in the market, pushing the pair slightly lower but the flows were not too large to help sustain the downside.
The pair has so far moved in a tight range of 54.85 to 55.0750 but traders expect it to move higher on the back of oil demand later in the session.
