Reuters Market Eye - The rupee reverses its direction to trade at 61.17/18 versus Monday's close of 61.0950/1050.
The Indian unit had earlier hit 60.90, its highest level since Sept. 23.
Traders expect USD/INR to move in a range of 60.90 to 61.30.
The Nifty is trading 0.4 percent lower, while the Sensex is down 0.3 percent.
The dollar rebounds modestly against yen and euro following steep falls overnight.
September WPI inflation hits near five-year low of 2.38 percent.
Traders expect caution to prevail ahead of the Maharashtra election on Wednesday.
(Reporting by Abhishek Vishnoi)
