The Indian national currency has fallen moderately to 54.97 against the US dollar in noon trade on Wednesday on the foreign exchange market.

The Indian rupee had opened at Rs 55.08 against US dollar and was trading 0.03 per cent lower at Rs 54.97 compared to previous close of 54.95 this afternoon. Meanwhile, the Dollar Index increased 0.03 per cent to 79.68 after opening at 79.68 in the spot market.

The rupee fell back to the 55 mark against the dollar as importers increased demand for the American currency near the end of the month. The foreign exchange markets in some part had remained closed on Tuesday due to Christmas festival.

Foreign exchange dealers said that factors like the fiscal cliff and limited year-end capital flows into the market will continue to put pressure on the rupee while higher demand for dollar by importers will also pull down the value of the Indian currency in the market.

The benchmark Sensex index of the Bombay Stock Exchange(BSE) was trading up 171.62 points at 19,426.71. On the other hand, the Nifty was trading 45.45 higher at 5,901.20.