The rupee wedged in a tight range, currently at 53.66/67 versus its previous close of 53.6950/7150. Gains in the domestic sharemarket lead to some dollar selling by custodian banks and corporates. Shares are currently trading up 1.2 per cent.
Traders say the euro's losses, along with dollar buying by oil and gold firms, caps a bigger upside to the pair while downside is limited by share gains.
Traders expect buying to emerge around 53.60-62 levels, while sellers are expected to step in around 53.70-75, holding the pair in the 53.60-53.75 range for the rest of the session.
