At 11.50 a.m., the rupee was trading slightly higher at 54.11 against the dollar.
After opening flat at 54.20 against the dollar, the rupee strengthened to 54.03 in the morning trade today on firm Asian trade and capital inflows into the domestic market.
The Indian unit had closed higher at 54.18 at the Interbank Foreign Exchange market yesterday due to positive industrial output data.
The upcoming share sale of government-owned companies this month is likely to infuse capital flows thereby boosting the rupee sentiment.
However, rising inflation has dashed investors’ rate cut hopes from the central bank which may have a negative impact on the rupee.
