Rupee at 54.31-32 versus its 54.01-02 previous close as of 1611 IST, holding onto gains in a range-bound session.
Foreign bank dealer says expects 54.50 to hold for the session, with only position squaring by banks expected.
The rupee will respond to further political developments, especially with the Congress Party looking at mustering support from regional parties after a key ally withdrew its support.
Euro fell to a 1-week low against the dollar after disappointing German private sector data.
