The rupee is trading at 60.14/15, after hitting 60.1050, its highest since July 17 and versus the previous close of 60.24/25.
The Nifty is up 0.24 percent and will be watched for clues on foreign fund flows.
Importer dollar demand to meet month-end payment commitments will limit gains in the rupee.
The rupee is seen in 60.00 to 60.30 range during the day.
Most Asian units trading stronger against the dollar.
(Reporting by Swati Bhat)