The rupee is off the day's lows at 60.0950/1050 versus its previous close of 60.03/04 as foreign banks spotted selling dollars on behalf of exporters and offshore inflows into domestic shares further hurt the dollar.
Earlier, the rupee had fallen to as much as 60.35, not too distant from a near two-month low of 60.55 hit on Tuesday.
Foreign investors resumed buying into equities on Tuesday after a one-day halt and bought Indian shares worth 480.2 million rupees ($8.04 million), provisional exchange data showed.
The greenback may hold on to modest gains ahead of the outcome of the U.S. Federal Reserve's two-day meet that ends later in the day. Any indication that rates might be lifted sooner could spark a rally in the U.S. dollar.
The partially convertible rupee is seen trading in a range of 60.02 to 60.40 during the session.
(Reporting by Neha Dasgupta)
