Rupee higher; awaits June factory data

Traders will watch for June factory data at 11 a.m., which, if throws up a positive surprise, may lead to rupee gains on back of a stock rally.

India's industrial output grew at a slower pace in June, hobbled by weak investment at home because of policy inaction and a drop in export orders from the United States and Europe, a Reuters polls showed on Tuesday.

Dealers will also watch for oil-related USD demand which has been consistent in the last few sessions.