Reuters Market Eye - The rupee gains sharply on dollar selling by a large engineering firm. Traders say large private sector bank also seen selling greenback.
The Indian unit is trading at 61.96/97 per dollar versus its Monday's close of 62.1650/1750.
The rupee can gain up to a maximum of 61.88 during session - traders.
The market is watchful of central bank stepping in to buy greenback to prevent further gains in local unit
Gains in domestic share market also boost sentiment for the unit; Nifty <.NSEI> is up 0.8 pct.
(Reporting by Swati Bhat)