The rupee strengthened further on Thursday afternoon, breaking below the 55 per dollar mark as inflows from custodian banks continued with equity markets staying firm, while a foreign bank was spotted selling dollars, traders said.
At 1:07 p.m., the partially convertible rupee was at 54.99/01 per dollar, after hitting 54.9850, its strongest since May 22 and stronger than its previous close of 55.36/37 on Wednesday.
Traders said gains in the euro were also boosting sentiment for riskier assets.