Reuters Market Eye - The rupee is trading at 60.53/54 versus Tuesday's close of 60.68/69.
Most traders cite a Japanese bank's dollar-selling as the main reason for the Indian unit's gain.
Other foreign banks also stepped in to sell the greenback following the Japanese bank, they add.
Dealers estimate flows have been more than $250 million so far.
The prime minister is due to return from his first major foreign trip to Japan later in the day.\
Gains in domestic shares to record highs also aid sentiment for the rupee.
Traders expect good support for the USD/INR pair around 60.50 levels, followed by 60.38.
(Reporting by Swati Bhat)
