Reuters Market Eye - The rupee is trading at 62.55/56 versus its close of 62.87/88, on gains in the domestic sharemarket.
Traders, however, expect further USD/INR losses to be limited on the back of month-end dollar demand from oil firms.
The pair is expected to move in a 62.20-62.80 range during the session, two dealers say.
The BSE Sensex is trading up 1.4 percent.
(Reporting by Swati Bhat)