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The rupee is at 61.98/99 versus its close of 62.07/08 on Monday, tracking gains in other Asian currencies versus the dollar.
The pair is expected to hold in a 61.80 to 62.20 range during the session with importers expected to step in to buy dollars below the 62 mark.
The BSE Sensex is flat and will be watched for cues.
The dollar steadied against its rivals in Asian trade with major currency pairs sticking to tight ranges as traders awaited economic data later in the session for more clarity on the pace of the US economic recovery.
