The rupee reverses gains as domestic concerns resurface for currency after Fitch Ratings warns again on ratings, fiscal deficit.

The pair is at 55.33/35, coming off 55.05 low hit earlier in the session, versus last close of 55.23/24.

A Fitch analyst says India may face downgrade in the next 12-24 months during a teleconference.

Fitch says the government is likely to miss fiscal deficit target and macroeconomic trends have been disappointing.

Demand for U.S. dollar from oil and gold importers also supporting gains.

Technical charts show break above the top of the recent 54.05- 55.25 range on USD/INR should result in test of 55.45, which is 76.4 percent of the 55.89-54.04 move.