Rupee extends gains as corporates, custodians sell dollars

Reuters Market Eye - The rupee is trading at 60.74/75 versus Monday's close of 60.93/94 on the back of custodian and corporate dollar sales.

Traders expect the pair to face good support at 60.60 levels keeping it in a 60.60 to 61.00 range for the rest of the session.

RBI kept key policy rate unchanged but warned about inflationary risks should a shortfall in monsoon rains spark a surge in food prices.

Most other Asian currencies are also trading stronger compared to the dollar.

The BSE Sensex is trading up 0.5 percent.

(Reporting by Swati Bhat)