Reuters Market Eye - The rupee is trading at 62.26/27 versus its previous close of 62.09/10. The short-covering triggered after the USD/INR pair fails to drop below 62 levels in opening trade despite larger-than-expected fall in retail inflation rate.
Traders say several banks rushed to buy the greenback after the USD/INR pair continued to show strong support around the 62.05 level in early trade.
Losses in the domestic sharemarket also aided sentiment for the pair. The BSE Sensex trading down 0.6 percent.
India's retail inflation slowed to a two-year low in January, providing some relief to the ruling Congress party ahead of national polls, but a third straight fall in industrial output in December offered little hope for an economic rebound.
(Reporting by Swati Bhat)
