Reuters Market Eye - The rupee edges higher to 54.78/79 from its previous close of 54.85/86 as higher domestic shares and dollar selling by exporters offset losses due to demand from importers including oil, the largest buyers in the market.
Traders say gold importers also prompted to buy dollars as global gold prices stay near four-month lows.
The BSE Sensex is trading up 0.6 percent.
Traders expect the rupee to rise further later in the day as exporters are likely to short the dollar around 54.80-54.90 levels.
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What seemed like a possibility for the Nifty to cross the 8,000 mark just two weeks ago has now turned out to be a far-fetched dream. A 7,950-8,000 range could be used to book partial profits and re-enter closer to 7,750-7,800 for the next couple of weeks. The next big trigger would be the arrival of monsoons, writes Ambareesh Baliga. Read