The rupee is trading at 61.4375/4425, off day's low of 61.5050 but below Friday's 61.14/15 close.
Caution prevailed ahead of the RBI policy review on Tuesday.
The RBI is expected to keep repo rate on hold but tone in the statement will be key.
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The rupee hit a 1-1/2 month low on Friday of 61.62.
Asian currencies retreated broadly on upward revision to US GDP growth.
The Nifty is up 0.1%.