The rupee falls to 54.05/06 versus its Monday's close of 53.8650/8750 on the back of a global risk-off following the gridlock in the Italy elections.

Asian shares took their lead from overnight plunges in global equities to fall as an apparently inconclusive election outcome in Italy raised fears of a resurgent euro zone debt crisis.

The pair is seen moving in a 53.90 to 54.30 range during the session.

Traders say month-end dollar demand from oil firms is also likely to help the pair later in the session.

The Sensex trading down 0.6 percent.

Most Asian currencies also trading weaker compared with the dollar.