Reuters Market Eye - The rupee is off highs, at 54.27/28 after rising to 54.21 post better-than-expected factory data, 54.41/42 last close.
"The market anticipated a further low of 54.15, but that did not happen. So that's why the pair bounced back," says a private bank dealer.
The dealer adds forwards will get paid as some rate cut hopes may be pared back after better IIP, high consumer inflation.
January industrial production came in at a firmer 2.4 percent on year, while CPI rose 10.91 percent.
(Reporting by Subhadip Sircar)
