The rupee ended marginally higher after remaining stuck in a zone through Wednesday as traders played it cautious ahead of US data releases, amid doubts about whether a recent dollar rally could be sustained. The Indian unit closed at 43.7100/7200 per dollar, against Tuesday's 43.7200/7300, having traded between 43.68 and 43.72 through the day. "People are not sure about whether the dollar's rising trend is a temporary one or whether it will fizzle out," said a trader at a state-run bank.
"Traders are waiting for more data from the United States, and more importantly, for the Federal Reserve's interest rate meeting next month. That will hold clues as to how strong the recovery there is."
The rupee has lost 0.6 percent so far in 2005 after gaining nearly 5 percent in 2004. Apart from the dollar's rise, a drop in foreign fund investment has also aided the fall.