Reuters Market Eye - The rupee is trading at 61.07/08 versus its previous close of 61.19/20 but off its session high of 60.88 on demand for the dollar from oil refiners.
Domestic shares also gave up gains on profit-taking after hitting new life highs earlier in the session, also aiding sentiment for the USD/INR pair.
Traders will continue to monitor shares and debt for cues on foreign fund flows during the session.
The pair is expected to hold in a 60.85 to 61.20 range during the rest of the day.
(Reporting by Swati Bhat)