Rupee off highs was down on rumoured buying by a large state-run bank on behalf of the government, say dealers.
The pair is at 54.63/64, off 54.40 highs, versus its last close at 54.56/57.
Senior dealer says given the weak rupee fundamentals, importers are seen in a hurry to cover 1-3 months imports after seeing spot trade above 55.35 this week.
November factory data shows minor contraction in activity, also capping rupee gains.
