 "Rupee continues to trade higher on corporate dollar inflows")
The rupee is trading at 58.88/89 versus its previous close of 58.93/94, with dollar selling by some corporates but month-end demand for the greenback from importers limited the rise.
The BSE Sensex was down 0.7% and will be watched for cues on foreign fund flows.
Budget expectations would drive the markets in the near term, with traders expecting a range of 58.70 to 59.20 for the day.