The rupee falls to 56.28/30 from its 56.12/13 previous close, though above session low of 56.44.
Dealers say USD/INR off session high as euro rallies on media reports that European Central Bank policymaker Ewald Nowotny saw grounds for giving the euro zone bailout fund a banking licence.
Senior dealer tips 56.10-56.45 range for the rest of the session.
Month-end dollar demand from oil companies also seen, supporting USD/INR.
Custodian banks, including a U.S. bank, seen selling intermittently, but not much impact as USD demand is strong.
