The rupee is trading at 60.23/24 versus its close of 60.30/31 on Monday.
Foreign fund flows into the local sharemarket continue to aid the Indian unit, while gains in other Asian units versus the dollar also put downward pressure on the greenback.
The BSE Sensex trading up 0.7 percent.
The rupee is seen in 60.20 to 60.40 range for the rest of the session.
Good demand from importers limits further gains in the rupee.
(Reporting by Swati Bhat)
