The rupee is trading at 60.10/11 versus Monday's close of 60.20/21, with more than 1 percent gains in the domestic sharemarket aiding sentiment but month-end dollar demand for the greenback from importers is expected to limit sharper gains in the Indian unit.
The rupee is seen holding in a 60.00 to 60.30 range during the session and a broad 59.50 to 60.50 range until the budget due on July 10.
Domestic shares trading up 1.1 percent on the day.
Traders will monitor the domestic share market for clues on the direction of foreign fund flows.
(Reporting by Swati Bhat)
