Rupee lower ahead of inflation data

Reuters Market Eye - The rupee opens lower. The pair is at 54.35/36 versus Wednesday's close at 54.30/31.

The U.S. dollar hovered at seven-month highs against a basket of currencies on Thursday as investors warmed to the greenback following bullish economic data.

The government is likely to scale back the size of the its planned auction of shares in National Aluminium Co Ltd (NALCO), two sources with direct knowledge of the matter said.

February inflation, due 12 p.m., will be closely watched with any reading of below 6.5 percent likely to cement rate cut hopes.

The RBI chief comments on budget a positive trigger for rate cut hopes, though he said inflation remains high and stubborn.

Lower end of the perceived consolidation range of 54.00-55.20 held well on Wednesday as the market traded within the Fibo levels at either end (55.18 and 54.02).

(Reporting by Subhadip Sircar)