The rupee is trading at 60.26/27 versus Friday's close of 60.39/40 following weaker-than-expected US jobs data.
The RBI is likely buying dollars via state-run banks to prevent further fall in the pair, say traders.
Gains in the domestic share market are also weighing on the pair. Nifty is trading up 0.6%.
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Most other Asian currencies are also trading stronger compared to the dollar.
The pair is seen holding in a 60.15 to 60.35 range during the rest of the session.