The rupee was trading at 60.9050/9100 vs Monday's close of 60.8150/8250 in morning trade.
Foreign investors sold Indian shares worth $30.53 million on Monday, provisional data from exchange showed.
Emerging markets fell even after a private survey on China's factory sector outpaced market's expectations. Worries sparked after survey also showed factory employment slumped to a 5-1/2 year low.
Traders say the rupee will hold in 60.80 to 61.10 range on Tuesday.