Reuters Market Eye - The rupee is trading at an over one-month low as global risk aversion pulls down local stocks further.
The pair is at 54.48/49 versus Wednesday's close of 54.0750/0850.
Local shares are down 0.95 percent, headed towards their biggest daily percentage fall in two months.
"There was some USD buying before the daily RBI reference setting," says a dealer.
The euro hit a six-week low against the dollar on Thursday, a day after minutes of the Federal Reserve's last policy meeting showed some policymakers thought the Fed may have to slow or stop buying bonds before seeing a pick-up in employment.
(Reporting by Subhadip Sircar)
