The rupee trades at 61.0925 versus Monday's close of 61.13/14.
Pares losses made on Monday, when the Indian unit saw its biggest daily fall in 1-1/2 months.
Asian currencies mostly stronger versus USD.
Traders say data showing narrower trade deficit in August is also supporting the rupee.
Start of the two-day Fed meeting later in the day will be key for USD/INR pair, traders say.
(Reporting by Gaurav Pai)
