Rupee rises in early trade; 53.90-54.01 seen as support region

The rupee is higher in early trades, tracking gains in regional FX. The rupee is at 54.12/13 versus Thursday's close of 54.355/365.

A private bank dealer said the rupee will largely be flow-driven and tipped a 53.95-54.35 band for the session. The rupee continues to be supported at 54.01, which is a 50 per cent Fibonacci retracement of the 52.87 (February 6)- 55.15 (March 4) rally.

Forex dealers said a higher opening in the domestic equity market and strengthening of euro and yen against the dollar overseas, also supported the domestic currency.

The next support is at 53.95, charts show.

The rally in the US dollar took a breather on Friday as the sterling enjoyed a short squeeze, while the Australian dollar made the most of a barnstorming employment report at home.

Meanwhile, the BSE benchmark index Sensex rose by 98.95 points, or 0.51 per cent,to 19,669.39 in early trade today.