Reuters Market Eye - The rupee erases losses to trade higher on the day at 61.21/22, down from its close of 61.2750/2850 on Monday, after the finance minister says notification on the increase in import duties is likely to be released later in the day.
There was no consensus on whether the RBI intervened in the falls in USD/INR from a session high of 61.66 - not far from its record high of 61.80 hit on August 6.
The government announced on Monday it will look to restrict import of gold, silver and other non-essential items as part of its package to contain the current account deficit and boost foreign fund inflows to prop up the rupee.
Details of the import measures, however, are awaited by the market.
Traders say good dollar sales by foreign banks and some custodian flows are also hurting the pair.
(Reporting by Swati Bhat)