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The rupee is trading at 59.91/92 compared with its Monday close of 60.0125/0225, tracking gains in other Asian currencies versus the dollar and on expectations of continued foreign fund inflows into local shares.
The dollar started trade in Asia on the back foot on Tuesday having run out of puff near a two-week high, giving the euro a chance to get over an unexpected slump in German industrial output.
Traders will monitor the domestic share market for clues on the direction of foreign fund flows. The Nifty is down 0.24 percent.
USD/INR is seen moving in a 59.70 to 60.10 range during the session.
