``Intraday appreciation is possible; 54.80 forms a good support level to arrest any major appreciation. Upside is limited to 55.40/55,50. Overall trend remains firm unless prices break below 54.70,`` said Emkay Global Financial Services.
The partially convertible rupee closed at 55.21/22 per dollar compared with 55.11/12 at Wednesday's close.
Rupee weakened for a third straight session on Thursday as persistent dollar buying by oil refiners and absence of major dollar inflows due to a holiday in the US.
The Euro rose to a 3 week high against the dollar helped by better than expected euro zone data.