The rupee edges up to 53.63/64 versus its previous close of 53.74/75 as bunched up dollar inflows help offset the demand seen from importers looking to meet month-end commitments.
"Good inflows being seen as yesterday was a holiday. Oil demand is there, but not much. Broadly there are more sellers than buyers today," a dealer with a state-run bank said.
The BSE Sensex is up 0.3 percent.
Traders say broad losses in the dollar versus major currencies hurting sentiment for the pair. The pair expected to hold in 53.45 to 53.80 range rest of the session.
Rupee @ 09.00 AM (Reuters)
Rupee falls to 53.83 in opening deals as the market plays catch-up with the euro's losses on Wednesday but broad weakness in the dollar in Asian trade pushes the pair back to 53.68/69 versus its previous close of 53.74/75.
"Euro is much below the levels we saw when our market closed on Tuesday, so USD/INR opened stronger but most foreign banks are on the sell-side so I expect a 53.45 to 53.85 range today," a senior dealer with a state-run bank says.
Domestic forex and debt markets were closed on Wednesday for a local holiday.
Traders say dollar demand from oil firms is likely to limit any sharp fall in the pair while the broad risk-on sentiment will limit sharp gains, holding it in a range.
