Reuters Market Eye - The rupee is trading at 54.07/08 versus its previous close of 54.15/16, falling sharply from its seven-week high of 53.77 hit earlier in the session.
Traders say some losses in the euro and the pound also helping the dollar.
Short-covering also seen after the pair fell sharply over the last few sessions on the back of sharp global commodities sell-off which has raised hopes of a rate cut in May as it eases pressure on the country's record current account deficit.
(Reporting by Swati Bhat)
