Reuters Market Eye - The rupee is trading at 59.65/66 against the dollar versus its Friday's close of 59.91/92 but off 59.60 hit in early trade, its strongest since July 30.
Traders say good bunched up dollar inflows due to the extended weekend and positive local shares are aiding the rupee but good support for the dollar is seen from importers at current levels, preventing a further rise in the Indian unit.
Trading in the rupee resumed on Wednesday after a two-day break due to a local holiday and annual closing of bank accounts.
Sentiment for the rupee is also positive after the Reserve Bank of India kept rates on hold at its policy review while further tightening bank's access to cheap overnight funds.
Gains in other Asian currencies also underpinning sentiment for the local unit.
(Reporting by Swati Bhat)