The Indian national currency gained marginally against the US dollar to afternoon trade today at the Interbank Foreign Exchange (Forex) market while the benchmark stock index was also trading higher.

The Indian rupee increased 2 paise or 0.04% against US dollar to Rs 54.25 compared to the earlier close of 54.27. The currency had opened at 54.29 against US dollar today. The rupee recorded slight gains against the US dollar amid a slow demand for the American currency from banks and exporter even as it weakened in international markets. The Benchmark Sensex of the Bombay Stock Exchange (BSE) was trading up 32.97 points or 0.17% at 19,420.11.

The US dollar fell yesterday in the New York market after Federal Reserve policy makers began their meeting that might result in more asset purchase aimed at boosting growth in the world's largest economy. Eth asset purchases are believed to have an impact on the currency.

Glboal currencies also gained on hopes that the US might be able to resolve its fiscal cliff situation as the president has hinted that he is ready to cooperate with the Republicans on proposed tax hikes and spending cuts.