After suffering a losing streak for several days, the Indian rupee received some respite on Tuesday, after the announcement of Moody's decision to maintain India's sovereign rating at `Baa3' and outlook at 'stable'.

In its `Credit Analysis on India' report, Moody's attributed it stable outlook on India's rating to the country's strong GDP growth, high rates of savings and investment.

Market analysts believe that Moody's statement would help in attracting currency flows in the coming days, providing a much-needed support to the Indian currency against the dollar.

In addition, traders are optimistic that the government would be able to push through its key economic reforms in the winter session; regardless of the fact that parliament remained adjourned for a fourth day.

A FOREX dealer with a large state-owned lender said, "In the last seven days, capital flows slowed, compared with the demand for dollars. Now, it will improve."

Akhil Thomas, assistant manager (treasury) at Federal Bank, expects the rupee to trade in the range of Rs 55 to Rs 55.7 against the American currency.

On Tuesday, the Indian rupee opened at Rs 55.60 against the previous day's close of Rs 55.73 per dollar. The Indian currency touched an intra-day high of Rs 55.44 per dollar and ended the day at Rs 55.46 against the dollar.