The rupee is trading at 56.06/07 against the dollar versus its previous close of 55.9650/9750. It has traded in the 55.90-56.10 range during the session, largely tracking developments in the euro and global risk sentiment. Large selling of dollars from a telecom company earlier pressured the dollar-rupee pair, traders said.
The euro fell against the dollar on Tuesday after weak German manufacturing data fuelled concerns about slowing growth in Europe's largest economy. The common currency looked likely to extend losses on mounting concerns Spain may need a full bailout.
The domestic stock markets ended with modest gains, and the Sensex rose 0.24 per cent at close.
