The Indian rupee is trading higher by 40 paise at 73.54 per dollar on Thursday versus previous close 73.95.

Rupee came under pressure and fell to the lowest level in two weeks following broad strength in the dollar against its major crosses. The greenback has gained on back of better-than expected economic numbers and ahead of the important non-farm payrolls number that will be released tomorrow, said Motilal Oswal.

On the domestic front, an expected rift between the government and the RBI also kept the rupee under pressure. Refusing to back off, the government issued a press release stating that the functioning of central bank has to be "guided by public interest and the requirements of the Indian economy".

Today, USD-INR pair is expected to quote in the range of 73.70 and 74.50, it added.