The rupee was trading at 53.73 paise to the dollar at 9.45 am IST. The currency is expected to remain stable in line with equity markets, which have exhibited less volatility over the last few trading sessions.
A decline in crude oil prices over the last few trading sessions is also likely to help support the rupee in the near term.
Foreign fund flows into the equity markets are also likely to help the rupee. However, over the last few trading sessions fund flows from FIIs have remained subdued. Foreign funds are in a wait and watch mode and are looking to the government to unveil a fresh round of reforms.